Mable is a serial entrepreneur, regularly starting and disposing of businesses. On 1 October 2023, Eleventh Ltd, another company owned by Mable, commenced trading.
During the six-month ended 31 March 2024, Eleventh Ltd purchased a car cost £13,200, and has zero CO2 emissions. This car is used by Mable, and 45% of the mileage is for private journeys.
Under the model answer, the car qualifies for full FYA. However, I wonder why there's no private use adjustment because the owner privately uses it whereas no adjustment is needed if used by employees or directors.
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No private adjustment becasue the company owns the car. She will pay tax on the private use via the BIK rules
Hi,
I would like to be clear for this situation.
Then when we should care about the private use .There are cases where we have to do so.
what is making this case different.
Thanks.
If the business is owned by an individual and they use a car for business then you adjust for private use in the CA comp.
If a ltd co owns the car then no private use adjustment
Thanks a lot for help.
no worries - how did the exam go?
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