Quick Question on Tax Return

[martin_electrician]

My 07/08 tax return included these details:

Values carried forward to your 2008-09 return

You will need the following values to carry forward into your 2008-09 return.
Please print out this page and keep as part of your records, unless you overwrite the final figures from your own calculations.

Main pool:
£ 0.00

Car costing £12,000 or less (with private use):
£ 0.00

Car costing more than £12,000 (with business or private use):
£ 0.00

Single asset pool:
£ 0.00

Balance of first year expenditure:
£ 2256.16 Where do i input this value on my 08/09 tax return?
I think this value refers to my van which i bought last year - Does this value decrease each year automatically or should i be decreasing it until my van is written off? Or could someone please explain what this value means and what it is used for
Thanks

[martin_electrician]

Just bumping this - rang hmrc who didnt know where i need to put this figure on my online tax return so i've got to wait 3 days for someone to call me back with the answer.

Would i put the figure in this section?

http://i46.tinypic.com/v6it0w.jpg

[elainec100@cheapaccounting]

you enter the annual capital allowances in box 49 on full return, see the example on page 13 in the notes here to work out how to calculate the allowance:

http://www.hmrc.gov.uk/worksheets/sa103f-notes.pdf

[martin_electrician]

Thanks for the PDF, from looking at that i put 20% of the sum carried forward each year onto my tax return.

Is it right that lets say i earn £10k total profit - that 20% of the sum carried forward (lets say 20% = £1k) is taken off my profit

e.g.
Total Profit = £10k
Annual 20% allowance = £1k
======================
Adjusted profit/loss = £9k

Am i right in thinking this is how it works?

[elainec100@cheapaccounting]

The 20% is of the balance b/f on the asset pool - so 20% of £2256.16!

[martin_electrician]

Yes so 20% im my case is £451.23, what i'm querying is that the £451.23 comes off my total profit?

This is what happens when i put £451.23 in the other capital allowance box online - just making sure i'm putting the figure in the correct box so its being calculated correctly!

[elainec100@cheapaccounting]

Yep that is right

[martin_electrician]

Thanks Elaine - you've been very helpful ;)

[TessaS]

This has been very useful to me - I had similar questions..!
I was wondering if I could just have a one little answer more..?
In the first post of this thread, all the values but the last ('balance of first year expenditure') were £0.00. I have a figure in the 'car costing £12,000 or less (with private use)' section too.. Do I take 20% of this figure also? And do I then include that in the 'Other Capital Allowances' box on my return?
Sorry! And thank you - your help is invaluable! I find tax very taxing, despite the HMRC claims!

Tessa

[TessaS]

Sorry - thought I'd just post again in hopes that someone will see my question today and help me! - It's the last thing I've to do on my return!
Thanks!
Tessa

[martin_electrician]

I would have thought so and put 20% of the balance in the 'Other Capital Allowances' box - but i'm no expert on this! Have you tried ringing the tax return helpline - they rang me back and confirmed what elaine said

[TessaS]

Yes - but they have a 7-day call back period currently, so I got impatient..!
Thanks for your help,:)
Tessa

[elainec100@cheapaccounting]

Yes - but they have a 7-day call back period currently, so I got impatient..!
Thanks for your help,:)
Tessa

read the notes I point to - they tell you how to deal with cars

[David Griffiths]

I would have thought so and put 20% of the balance in the 'Other Capital Allowances' box - but i'm no expert on this! Have you tried ringing the tax return helpline - they rang me back and confirmed what elaine said

But you have to restrict that 20% claim for the amount of private use

[Richard231]

e.g if you car is £10k, then the capital allowances are £2k (being 20%). If you use the car 25% personal, 75% business, then you can only claim the 75% of the £2k - i.e. £1.5K.

The carried forward value of the car onto next years return is £10k - £2k = £8k (even though you couldn't claim the whole £2k)