Balancing charge - Private car for business use

mickdw · 08-03-2016 02:22PM #1

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?

Lockedout2 · 08-03-2016 08:25PM

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.

mickdw · 09-03-2016 12:11PM

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.

Balancing charge - Private car for business use

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