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UK Tax Return - car insurance payout?
Please help me with my Tax Return. During the tax year, we bought a car for £450 but after a few weeks it was damaged and written off in an accident and we received a £1,000 insurance payout. As the car was mainly used for business, do I class the business portion of this money (90% ie. £900) as business income or Capital Gains or as an expenses credit or ignore it?
We used the £1,000 payout to pay for a new car and the insurance. What figures do I write where? (We had no other Capital Gains that I am aware of.) Thank you.
3 Answers
- TavyLv 78 years agoFavorite Answer
Forget it. The least the tax man knows the better. Hopefully you did not put the money in your business bank account.
UK
Source(s): Rtd Business Owner UK - Anonymous8 years ago
It's a disposal of an asset in a capital allowance pool. The proceeds are deducted from the pool. As the car will have been in a single asset pool, the result is a balancing charge, which you put in your tax return.
Se my answer to your other question.
- Anonymous8 years ago
I wouldn't even mention it.
The figures should cancel each other out anyway.
Source(s): Only tell the tax man what you have to. He gets confused if you give him too much information.
