This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

WDA on Car (Asset)

8thegeorge
Posts:44
Joined:Wed Aug 06, 2008 3:24 pm
WDA on Car (Asset)

Postby 8thegeorge » Fri Jan 07, 2022 7:18 pm

Hello

Car, an asset of my IT business, is valued at £20000 at the start of year one. I claim allowance at 18% (£3600,modified by business/private use to £2000) at year end. Shall we say that the value is then £18000.
When I repeat the process at the end of year 2 should I start with a value of £18000 or the actual value of the vehicle at market price which may well be somewhat less that £18000, shall we say £16000?
The above figures are purely for example.

Many thanks

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: WDA on Car (Asset)

Postby bd6759 » Fri Jan 07, 2022 10:15 pm

You have written it down by £3,600, so it’s value at the start of the next year is £16,400.

8thegeorge
Posts:44
Joined:Wed Aug 06, 2008 3:24 pm

Re: WDA on Car (Asset)

Postby 8thegeorge » Fri Jan 07, 2022 11:29 pm

Thank you for that. However I am now slightly confused. You say that I have written down, in my example, by £3600 and the car is then valued at £16400.
What about the effect of the personal/business use in calculating that write down?


Return to “Business Tax”