Treatment of buying Co. used car & non balanced accounts

[TykeMerc]

I could have sworn that we discussed this issue months ago with exactly the same advice being given.

If memory serves you were advised back then to bin the idea of a car like an X5 as a status symbol and get something sensible, cheap to run and economical instead and NOT as a company car.

The conclusion is the same now as it was then.......

Incidentally now you think you will pass 24 months at substantially the same site you should stop expensing your travel completely as HMRC will shaft you if they find out.

[css_jay99]

When I worked in an accountants back in 1980 I was told of a case where someone just could not make it balance. They found out the previous year someone had just pretended it balanced!

Of course that was only a few pence : you need to put all the figures into excel and find the £70.

I am going to try again but this time use my Sage Account Plus. Im prety much sure that the P&L in accurate as I need to summit by tax return 1st september, but usually use that time to do my year end accounts as well rather than wait till end of the year

Its just a pain in the backside entering all transactions into the accounting software rather than my spreadsheet.

If i cant find it then Im just going to have to do some creative accounting

RE BIK

How long have you been travelling to the 'client' is it only one 'client'? If you have been there for more than 24 months (or know you are going to be for more than 24 months), you will struggle to say to it is solely for business journeys has it will be treated as ordinary commuting.

Ive been at client site for 17months, It might probably strech to just about 24months, but just keep thinking next contract will probably be outside of london and i cant keep piling the mileage on the X5

[Robot]

[QUOTE=css_jay99;924199]Hi guys, please i need some help on some accounting treatments.

buying 2ndhand car for company
I need to buy a company car as a company as my other car is costing me a bundle driving to client(30k miles yearly). I will be buying a some form of 2005 Diesel engine car.

What will be its cost/net book value/ depreciation treatment?
can i claim WDA?

I assumme that I wont incurr any BIK as I will only use it for work and car is available for all employees to use (well im the only employee)?

RE BIK

How long have you been travelling to the 'client' is it only one 'client'? If you have been there for more than 24 months (or know you are going to be for more than 24 months), you will struggle to say to it is solely for business journeys has it will be treated as ordinary commuting.

[xoggoth]

I think the car thing is well covered on HMRC's site. Most seem to think it not worth it. Might be better to buy a reliable banger personally and claim mileage.

A balance should really be done initially over just the current year just zero all the carried forward stuff. £70 does not sound huge in presumably tens of k turnover. The principle of materiality says that you do not have to expend effort disproportionate to the result. For complex businesses, I bet not one set of accounts in 10 is accurate to better than 1%.

Looking back at old accounts when I was trying to understand these things I found professional accountants frigged the creditors figure to some extent. There were errors that should have prevented a balance but they always did.

[BrilloPad]

Final accounts
I am currently doing my final accounts. Accounts is not balancing by about £70, I have fully reconciled the bank statements/invoices/receipts/payments... but just cant find the damn discrepancy

What can i do to make it balance?

cheers


css_jay99

When I worked in an accountants back in 1980 I was told of a case where someone just could not make it balance. They found out the previous year someone had just pretended it balanced!

Of course that was only a few pence : you need to put all the figures into excel and find the £70.

[pmeswani]

Hi guys, please i need some help on some accounting treatments.

buying 2ndhand car for company
I need to buy a company car as a company as my other car is costing me a bundle driving to client(30k miles yearly). I will be buying a some form of 2005 Diesel engine car.

What will be its cost/net book value/ depreciation treatment?
can i claim WDA?

I assumme that I wont incurr any BIK as I will only use it for work and car is available for all employees to use (well im the only employee)?


Final accounts
I am currently doing my final accounts. Accounts is not balancing by about £70, I have fully reconciled the bank statements/invoices/receipts/payments... but just cant find the damn discrepancy

What can i do to make it balance?

cheers


css_jay99

How about speaking to an accountant?

[css_jay99]

Hi guys, please i need some help on some accounting treatments.

buying 2ndhand car for company
I need to buy a company car as a company as my other car is costing me a bundle driving to client(30k miles yearly). I will be buying a some form of 2005 Diesel engine car.

What will be its cost/net book value/ depreciation treatment?
can i claim WDA?

I assumme that I wont incurr any BIK as I will only use it for work and car is available for all employees to use (well im the only employee)?


Final accounts
I am currently doing my final accounts. Accounts is not balancing by about £70, I have fully reconciled the bank statements/invoices/receipts/payments... but just cant find the damn discrepancy

What can i do to make it balance?

cheers


css_jay99