boxes 22-25 on tax return

[MTI]

Hi all, as per title please could anyone kindly shed some light upon what info goes in these boxes? They are:

22) Anual investment allowance
23) Allowance for small balance of unrivaled expenditure
24) Other capital allowances
25) Total balancing charges

I believe, 22 is tools, computers etc which i use solely for business use anyway and isnt much anyway this year so that has been entered?

23 - "If the balance of the 'main pool' or 'special rate pool' after claiming Annual Investment Allowance, together with any balance carried forward from any previous year, less any amount you got from disposing of the equipment you no longer use, is £1,000 or less, you may claim that whole amount or part of it as a 'small pools allowance' instead of the 20 per cent or 10 per cent writing down allowance. Enter the amount of this allowance in this field."

I did a straight swap with my vehicle from 08-09 for the one i have now - 09-10 tax year.

My accountant put down in 08/09 purchase at £3600 and depreciation at 25%???? =£900

So what is it im claiming for now please this year? another depreciation as this is an expense?

24)
If you sell an item in a single asset pool or car pool (see below), and the proceeds or value is less than the pool value or cost of the item, the difference is called a balancing allowance and should be included with other allowances here.
Cars
Expenditure on cars does not qualify for AIA. The types of allowances you are entitled to, and the amount you can claim, depend on when the car was bought, the cost, and whether you use it for private purposes?



25) Fairly straight forward i think once the first few are answered.

Kindest Regards, Martin

[elainec100@cheapaccounting]

Daft question back to you - why isn't your accountant filling this in for you or giving you the figures to do so?

[elainec100@cheapaccounting]

You need to do a tax comp showing the add back for disallowed depn and then the capital allowances on the vehicle.

Can advise more here as there are various rules e.g. if it is a van, value of the vehicle, when bought, CO2s etc.

Also you need to show the disposal and balancing allowance or charge on the previous vehicle.

Not trying to be difficult but it is a bit complicated - hence the question about the accountant!

[MTI]

Daft question back to you - why isn't your accountant filling this in for you or giving you the figures to do so?

Because im pushed for time and my existing accountant is no longer existing as far im concerned due to lack of customer service. I have all my previous accounts for last couple of years and have kept everything in order. Money is tight this year and i wish to submit myself and possibly employ a new accountant next year. The only thing im struggling on is the above mentioned and have left these to come back to. I kind of understand what its asking but due to what my accountant submitted last year and what the HMRC website says, the figures are different. I see nothing of 25% vehicle depreciation.

[MTI]

You need to do a tax comp showing the add back for disallowed depn and then the capital allowances on the vehicle.

Can advise more here as there are various rules e.g. if it is a van, value of the vehicle, when bought, CO2s etc.

Also you need to show the disposal and balancing allowance or charge on the previous vehicle.

Not trying to be difficult but it is a bit complicated - hence the question about the accountant!

Thank you Kindly for your time and info.

The first was a car with higher emmisions costing £3600 in 08-09.
My accountant claimed 25% depreciation:

fixed assets:

cost of motor vehicle at 1 april 2008: 3600
additions: 0
at 31 march 2009: 3600

depreciation:

at 1 april 2008: 900
charge for year: 900
at 31 march 2009: 1800

net book value:

at 31 march 2009: 1800
at 1 april 2008: 2700

Please could you confirm if you beleive all the above to be correct?

Think i understand its method but its not the way a simple conversation would word it. I appreciate its detailed.

The car was swapped straight for a van in same year 08-09 - 2001 plate with higher emmisions of 160g or more as per HMRC

Your time is most appreciated!

[zhuwh]

I think this
"You need to do a tax comp showing the add back for disallowed depn and then the capital allowances on the vehicle."
is correctly right.just do it

[elainec100@cheapaccounting]

Thank you Kindly for your time and info.

The first was a car with higher emmisions costing £3600 in 08-09.
My accountant claimed 25% depreciation:

fixed assets:

cost of motor vehicle at 1 april 2008: 3600
additions: 0
at 31 march 2009: 3600

depreciation:

at 1 april 2008: 900
charge for year: 900
at 31 march 2009: 1800

net book value:

at 31 march 2009: 1800
at 1 april 2008: 2700

Please could you confirm if you beleive all the above to be correct?

Think i understand its method but its not the way a simple conversation would word it. I appreciate its detailed.

The car was swapped straight for a van in same year 08-09 - 2001 plate with higher emmisions of 160g or more as per HMRC

Your time is most appreciated!

do you have the capital allowances schedule from last year as depreciation is not allowed for tax but you claim capital allowances.

BTW - time is not tight was you have until 31 Jan 2011 to get the return in for 2009 / 2010.

As I said you need to add back depn and show the information for capital allowances and with respect what you are giving does not cover it.

My suggestion (with your tight budget in mind) is pay someone to do the tax comp and forms for you based upon your accounts. Should keep costs to a min.

[MTI]

do you have the capital allowances schedule from last year as depreciation is not allowed for tax but you claim capital allowances.

Yes, I have a copy of the tax return.

22) not entered
23) not entered
24) 540
25) not entered

I also have an expense breakdown within the seperate book of accounts done by the accountant.

BTW - time is not tight was you have until 31 Jan 2011 to get the return in for 2009 / 2010.

I know but id like to do it asap. I have just moved house and things are chaos plus, this years books are spiralling out of control already and we are only a month in! Would just be nice to have it done and out of the way so that i can budget if i owe anything too.

Thanks for all your help so far. I just hope to complete this very shortly and your time is massivley appreciated. I can then look to employ another accountant for next year in my own time.

As I said you need to add back depn and show the information for capital allowances and with respect what you are giving does not cover it.

Any chance you could expand a little on this for me please?
Im just unsure of which boxes to place these in as the helpsheets are quite in depth under different circumstances.

Does this mean my accountant did something he shouldnt with regards to the 25%?

My suggestion (with your tight budget in mind) is pay someone to do the tax comp and forms for you based upon your accounts. Should keep costs to a min.
Ill take this into account. At such short notice and busy times for accountants, im unwilling to wait the four months that my last accountant see's fit.

[elainec100@cheapaccounting]

Ill take this into account. At such short notice and busy times for accountants, im unwilling to wait the four months that my last accountant see's fit.

Sorry I have to challenge this ..

Short notice - you have until Jan 2011 to file this!

(unless of course you are late with 2009 / 2010)

Most accountants will not take 4 months for this - with respect it sounds like you had a bad experience.

See the sticky on how to select an accountant.

Good luck with it

[MTI]

You need to do a tax comp showing the add back for disallowed depn and then the capital allowances on the vehicle.

Can advise more here as there are various rules e.g. if it is a van, value of the vehicle, when bought, CO2s etc.

Also you need to show the disposal and balancing allowance or charge on the previous vehicle.

Not trying to be difficult but it is a bit complicated - hence the question about the accountant!

After reading this several times, i think i have a much clearer understanding now.

Does this mean that my chartered accountant has done something that he shouldnt with regards to the 25% before i start to chase this up?

maybe i will go see another accountant today and possibly employ. I just cannot afford to wait to only find out i have a massive bill. On the other hand, in the same token, anything im owed is mine and would be a massive help in this tough financial time. I appreciate people are not going to do things for love and neither do I but i just can justify spending up to a few hundred pounds on such a 'small matter'. Its not like its the whole tax return that i need filling in on my behalf, but just 1%. I appreciate its my name and responsibility regardless of whoever fills out the forms to be submitted to be as the HMRC says, 'tax doesnt have to be taxing' and they do not force anyone to employ an accountant. They just state the name on the form is liable.

Thank you for your time once again.

Martin

[elainec100@cheapaccounting]

Does this mean that my chartered accountant has done something that he shouldnt with regards to the 25% before i start to chase this up?



Can't think why you would assume that - he / she would have adjusted the depn on the tax comp! You just don't seem to have that info.

I would like to try to mend my own car some times but I choose to pay a professional to do it - same thing really as paying an accountant to do their job :p

[Blackberry]

Have to agree with Elaine in that i think youd really benefit from using an accountant.

not all of us take months to prepare a set of accounts and a tax return, we have an average completion time of just 3 weeks! and not all of us charge the earth in fees.

I'm sure that there would be plenty of accountants on here who would be happy to have you as a client and give you a fixed fee quote too

[julian_shaw]

I have to agree with Elaine here. The cost of using an accountant to do your tax return (http://twdaccounts.co.uk/services/self-employed-tax.html) alone should be manageable - you can definitely get great professional advice for significantly less than a few hundred pounds for sure.

And it's going to be money well spent if you claim the right amounts on your return. The rules for Capital Allowances etc are so complex and constantly changing that you really should have someone who is up to date looking at them. Get it slightly wrong and it could cost more than an accountant would charge.

Elaine offers a great value service, or if you want I could tell you other accountants who could help.

[elainec100@cheapaccounting]

Thanks both