From: "Jon" 
Newsgroups: uk.finance
Subject: Re: Disallowable expenses
Date: Wed, 28 Jan 2004 11:49:07 -0000

Why should the car not be in 3.44 or 3.62? The car's value is about £6,000.
3.14 only seems to be for cars worth over £12K.

Jon

"Ronald Raygun"  wrote in message
news:MlMRb.1955$ji7.19253480@news-text.cableinet.net...
> Jon wrote:
>
> > On my self assessment tax form, I have entered in my figures in the
> > Depreciation boxes 3.44 and 3.62. They are identical as I have to use
> > capital allowances instead.
> >
> > I presume I would normally use the figure in box 3.62 and copy that to
box
> > 3.16, yes?
>
> Not normally, no.  But if your depreciation policy is to use the
> same recipe as is used for capital allowances, then yes.
>
> > e.g. I have £4,000 in the above mentioned boxes. £4,000 goes in box 3.16
I
> > am assuming. But what if you have £1,000 of the above figure that is for
> > private use? Do you just knock it down to £3,000, and put that reduced
> > figure in box 3.16? And still leave the £4,000 in boxes 3.62 and 3.44?
> >
> > I am assuming this would account for the private element.
>
> If there is a private element (we're not talking about cars, are we,
> as they would go in 3.14 -- the magic £3k figure seems to suggest it
> might in fact be a car), then you're right that it should not be part
> of the total appearing in 3.16, but strictly speaking it should not
> really be in 3.44/3.62 either.
>
> For tax purposes it doesn't really make any difference whether 3.44
> and 3.62 are both bigger or smaller by the same amount as they cancel
> out anyway, but for your own purposes you'll want to be clear whether
> you consider the asset as entirely owned by the business or partly by
> yourself.  If the latter, you ought to be "co-funding" the depreciation,
> as it were.
>