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Balancing charge - Private car for business use

  • 08-03-2016 1:22pm
    #1
    mickdw
    Registered Users, Registered Users 2 Posts: 23,688 ✭✭✭✭


    Looking for help here.
    I bought a new car in 08 prior to the co2 system being in place and Im selling it now and buying another.
    I want to try to work out how things go re balancing charge etc

    Some figures:

    Car new in 08 cost 51.5k (limited to 24k claim, 3k per year)
    Take 30 percent business use claimed each year.
    (No claim made for first 2 years as business didnt exist)
    6 years claimed

    Selling car now for 12k.

    Will be replacing it with a Band C which seems to give a 24k claim regardless of cost.

    Can anyone do the calculations and also if I owe balancing money, can it be offset into the next car reducing the claim on it?


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    If it's written down to zero then there is some exposure.

    If you started claiming at TWDV of €18,000 then I'd go with €12,000x 18/51.5 x 30%= €1258.


  • #3
    mickdw
    Registered Users, Registered Users 2 Posts: 23,688 ✭✭✭✭mickdw


    I thought the calcs go something like this for an example of all 8 years claimed

    Cost 51.5k
    Cost limited to 24k
    Yearly Claim 3000 x 30% = 900

    Sale price 12k
    Sale price limited=12k x 24/51.5 = 5592
    Business loss =(24k - 5592)×30%=5522

    business claim = 8 × 900 = 7200

    Balancing charge 7200-5522 = 1678 payable.

    If only the last 6 years are claimed it complicates it alittle.


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