Tax Return - Car Question

[Dave80s 0]

Hi there can anyone help me with this tricky part of my self assessment.

 

I sold my car in the last tax year and bought a new one, so have I got the calculation right for self assessment purposes?

 

Car bought for £4400 (in the previous tax year) so I wrote down 25% of the value = £1100

 

So £3300 carried forward (£4400 minus £1100)

 

Now this tax year I have sold it for £2100 therefore £3300 minus £2100 = £1200 as an expense.

 

Sound right so far?

 

Now I have bought another car for £9100, so writing down 25% of that is £2275.

 

Therefore this year I am claiming £3475 (which is £1200 + £2275)

 

Finally divide £3475 by 50% as I use the car(s) privately = £1737.50

 

Sound correct?

Edited December 28, 2006 by Dave80s

[Active Discos 0]

Sounds right to me. I am in the same situation this year and would calculate the same as you have except I would divide it by about 10 at the end of the calculation as I only use my car 10% of the time for discos.

[Danno13 0]

I'm pretty sure you're supposed to just claim 40p per mile for use of a car for a business. Not sure you can actually just purchase the car as an asset for the business like you can with vans.

 

Best to speak to an accountant though.