Vehicle Written Down Allowance Question

hollie.weimeraner

A question regarding written down allowances. I am self employed and receive an employers pension but still pay tax at the basic rate.

On last years tax return I claimed for a vehicle purchase of £19,600. As I had only been self employed for about 6 months my claim was for £1,960 less my private mileage percentage less the ½ year allowance.

My brought forward WDA for the car was £17,640 which I sold inS eptember for £14,500 (loss of £3,140).

I then purchased a new car for £18,250 which is eligible for 100% capital allowance as it’s emissions are less than 100G per Km.

The way I will be calculating my allowances will be to write off £3,140 less private use as a business loss and then introduce the new car onto the car pool at £18,250. As I don’t earn enough to warrant using the 100% WDA I am intending to write it down at the rate of approximately 20% this yearand then add it to the car pool for writing down at the new 18% rate next year.

Can anyone advise if this is the correct way to treat the sale and purchase?

I have tried to contact my local tax office but cannot get through:mad: