Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Tristan R Clean on November 22, 2016, 10:17:41 pm
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Does anyone know if you sell a van , does the money you get for it ( the whole amount) go on as turnover.
Hope this is clear.
Tristan
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Any ideas anybody ?
Tris
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I believe it will go down as profit. When you buy your van it goes down as an exspense.
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Does anyone know if you sell a van , does the money you get for it ( the whole amount) go on as turnover.
Hope this is clear.
Tristan
It depends how you claimed it in the first place. Once you have 'settled' on a taxation format you can't change it until you replace your vehicle.
If you didn't take it into the business and you claimed business mileage allowance (so you didn't claim fuel, insurance, servicing and repairs etc) then whatever you sell your van for is yours. Currently mileage allowance is 45p per mile for the first 10,000 miles and 25p for each mile thereafter. (You can't claim business mileage allowance on any private mileage traveled. So the trip to the chippy at lunch time in the van from the area you are working in and back is private mileage.)
If you have it as a business asset and you claimed the full amount of the purchase price in the first year then whatever you sell the van for goes back into the pot for taxation purposes.
If you opted to write the van down each year then this is slightly more complicated. But in simple terms you will end up with a 'pool' which is what the the tax man says the vehicle is worth that year. If you sell it for more than the 'pool' amount then the difference between the pool and the selling price is taxable. If you sell it for less than the 'pool' amount then the difference can be claimed against tax as an expense.
Using the WDA (write down allowance) you can write the whole remaining pool valve off against tax once it reaches £1000 (it was than a couple of years ago.) If you did that then you have to pay tax on the full amount you sell the van for. Obviously you can't do this in the same tax year.
You record this info on the capital allowances section so the Receiver can see what you are up to.
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Thanks fellas for replies . Very helpful. Was panicking a bit but mind at rest now .
Tris