Error
How to solve it
Enter maintenance costs as ?ve!
Either amend the (Maintenance costs) value entered to add a leading minus sign, or use the 
button to change the sign of the value.
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Car lease rental restriction |
See Also
Expense analysis | Multiple car lease rental restrictions - Summary | Profit and loss account / Income statement (D schedule) | Working with Foreign Currencies
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
This schedule calculates the car lease rental restriction in respect of car leasing costs. The software will calculate any required disallowance automatically within the schedule.
The software uses the relevant formulae to compute the disallowable leasing costs, depending upon whether the pre FA 2009 rules apply to the lease - either because the lease pre-dates 1 April 2009, or because the opt-out from the post FA 2009 rules has been made ? or the post FA 2009 rules apply.
The Schedule can be developed from the Profit and loss account or any Expense analysis schedule, using Develop > Leasing > Car lease rental restriction or Develop > Link > Car lease rental restriction.
Note: Only one of the Car lease rental restriction or Multiple car lease rental restriction schedules should be developed, not both. You should decide which schedule is more appropriate.
The schedule is divided into two sections headed respectively: -
As you would expect, which section details of the lease are entered into determines which disallowance formulae is applied and therefore what information is required to be entered in the Original cost / CO2 emissions column. For leases under pre FA 2009 rules, enter the Original cost, for leases under the post FA 2009 rules, enter the CO2 emissions.
The schedule is tabular, providing a row for each lease. Additional rows can be inserted in either section as required by use of the Insert key. Columns are provided for Registration number, Original cost / CO2 emissions , Leasing payments/(rebate), (Maintenance costs) and Disallowable.
To enter a lease payment into the Leasing Payment/(rebate) column, you should enter the figure as a positive amount. To enter a rebate, you should enter the figure as a negative amount.
(Maintenance costs) which do not give rise to a disallowable element should be entered as negatives in this column.
The Disallowable amount is calculated by the system based on the lease payments net of the maintenance element.
Reconciliation to P/L account
The schedule includes a reconciliation to the P&L. Using the Develop > Link option, adds a selected P/L entry to the reconciliation at the foot of this schedule. A check error will persist until the car details are entered and balance.
The Develop > Leasing option can be used where you want to populate the schedule with the car leasing details before ensuring it reconciles back to the P&L. Once the items do reconcile to the P&L, you should then link the P & L amount to the expensive car schedule using the Develop > Link option.
Foreign currency computations
Under the Finance Act 2000 provisions capital allowances can be in foreign currency, which also includes the 12,000 GBP leasing limit. CTA 2010 S7(3) and CTA 2010 s8(3) allows either the average rate to be used or the rate ruling at the time of the transaction as reflected in the schedule.
If the computation is using a foreign currency, you may enter a currency formula (for example, @$1.4) in the Exchange rate column. Otherwise, you may find that currency conversion errors appear in the computation.
For more information on using foreign currencies in computations, see Working with foreign currencies.
The schedule has no standard sub-schedules.
Where a new period is built, the Registration number and Original cost / CO2 emissions are automatically carried forward.
| Error |
How to solve it |
Enter maintenance costs as ?ve! |
Either amend the (Maintenance costs) value entered to add a leading minus sign, or use the |
© 2009 Thomson Reuters.