Expensive cars

Background

This schedule calculates allowances on expensive cars, providing one line per car. Additions and disposals are reconciled to C and C1. Unused columns are hidden; additional lines may be added as required, using the Ins key.

2009 and later years

Cars qualifying for capital allowances based on their CO₂ emissions should be added to either the Plant Pool or the Special rate assets pool , depending upon the relevant CO₂ emissions. These cars should not be included as de-pooled expensive cars on this schedule.

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Developing the schedule

One copy of the schedule may be obtained by use of the Develop > Cars > Expensive cars menu option.

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Completing the schedule

Registration, Make, Original cost, TWDV b/f, Additions, Proceeds

The user is required to enter registration number, original cost, additions and disposal proceeds if appropriate. The TWDV b/f cell will be completed automatically where a new period is built from the earlier year.

Cost limit for restriction

The cost limit for allowances has a default value which may be changed if necessary.

Writing down allowances (WDA) waived

By default any writing down allowances (WDA) waived are apportioned across assets automatically. For FY 2005 files and onwards it is possible to manually allocate WDA waived across individual assets by means of a selector on the schedule. Data entry cells will be displayed for this purpose.

Investment companies

The investment company variant of the schedule is identical to the trading company version, except that allowances are treated as expenses of management. For long periods of account, the movement is duplicated for the stub period.

?Hybrid? rates of WDA

Where the rate of WDA changes between financial years and a ?hybrid rate? is required to be applied, the software calculates the relevant rate and displays this. Note that this will not display or print in the final version.

A data entry cell is provided to allow for the rate to be overridden if required, and for clarity the rate of WDA applied is also displayed.

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Standard sub-schedules

The schedule has no standard sub-schedules.

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Carry forward

On carry forward, each line in the earlier year will be inserted on the same schedule for the later year. Details of cost and registration number will be transferred, and tax written down values carried forward and brought forward will be linked.

Totals carried forward and brought forward will be cross-checked. Cars with zero TWDV c/f will not be carried forward.

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Related errors

Error	How to solve it
Sign error	This error results from the sign conventions used within the software. This error can be resolved by clicking the button.
Excess waiver	This error occurs when the writing down allowances (WDA) disclaimed are in excess of the amount of WDAs actually available. Ensure that the WDAs disclaimed are not in excess of the actual WDAs.
Allowances waived should be positive	This error results from the sign conventions used within the software. Writing down allowances (WDA) are deducted from the profit before tax to arrive at profits chargeable to corporation tax. If the allowances waived are entered as a negative number, this actually increases the WDAs claimed in this accounting period instead of deferring them until future accounting periods. This error can be resolved by clicking the button.
Remove manually entered values above or select to manually allocate WDA waived	For FY 2005 files and onwards where the user has selected not to manually allocate writing down allowances (WDA) waived but has made manual entries these entries are not relevant and should be removed.

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