Tax return help

[macp]

Swmbo has to do her tax return today for the company which no longer trades.She is not sure how to enter the sale of an asset which was a company vehicle.Is it income,turnover?

[Eric Mc]

Is this a limited company or a sole tradership?

[macp]

Eric Mc said:

Is this a limited company or a sole tradership?

Sorry was not ltd just her and her mother running a mobile sandwich business.

[Eric Mc]

I presume she claimed Capital Allowances on the vehicle in previous years?

Is it a van or a car?

Has a new vehicle being purchased to replace the one that was disposed of?

YHM by the way.

Edited by Eric Mc on Friday 29th January 09:45

[macp]

Eric Mc said:

I presume she claimed Capital Allowances on the vehicle in previous years?

Is it a van or a car?

Has a new vehicle being purchased to replace the one that was disposed of?

YHM by the way.

Edited by Eric Mc on Friday 29th January 09:45

Thanks Eric

She does not think that she claimed capital allowance.
The vehicle is a van and no new vehicle was purchased to replace it.
Thanks I will check my mail

[Eric Mc]

She's missing out on some very good tax breaks it seems to me.

Edited by Eric Mc on Friday 29th January 12:18

[Wings]

It is not what one earns, but what one keeps!

Not to claim capital allowance against a vehicle, especially a van, how short sighted on not employing an accountant, with even the costs for the same being deductable.

[Eric Mc]

An example -

New Van - Cost £15,000

Tax Saving (at basic rate) £3,000.00
Tax Saving (at Higher Rate) - £6,000.00
Class 4 NI Saving - £1,200.00

Accountancy Fee - £200 to £500 (for a sole trader).

[Wings]

Absolutely, it may be correct for the OP’s “Swmbo” to forfeit HMR&C’s £100 fine for a late return, and let an accountant both complete their closing trading accounts and Tax Return.

[Eric Mc]

That would be my approach too. Whjy worry about £100 when you could be saving £3,000 to £4,000 - not to mention reducing the Payments on Accounts for 2009/10.

[macp]

Eric

How rude of me Im sure I didnt say many thanks for all your help and assistance.She resolved it satisfactorily in the end.

Infact thanks to all who posted.