Capital allowances question

sec79

Hi
I am trying to do my first ever tax return. and would be grateful if I have got this right. I have been doing mystery shopping work since August 2007. for the capital allowances question, I have a car worth £5000, I understand I can only claim 25% of its value (£1250) and for 8 months (Aug 2007) to (April 2008) this would be £833. Is this figure right to put in the capital allowances question?

If my car use is 40% for business purposes, then for the goods or services for own use question do I just put in 40% of £833 which is £498?

thanks

Elaine_Wilson

Nearly right.

The capital allowances figure to be entered on the return is the business proportion only, i.e. the £498.

The figure to carry forward to base the next year's calculation on is £5,000 - £833 = £4,167.

The goods and services for own use should not apply in your case. This is meant, for example, for shop owners who take stock for their own use.