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- This topic has 4 replies, 3 voices, and was last updated 1 week ago by alawi sayed.
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- November 22, 2024 at 8:22 am #713418
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.
November 22, 2024 at 10:01 am #713422No private adjustment becasue the company owns the car. She will pay tax on the private use via the BIK rules
November 29, 2024 at 9:06 pm #713612Hi,
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.
December 1, 2024 at 2:25 pm #713661If 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 adjustmentDecember 2, 2024 at 9:53 am #713675Thanks a lot for help.
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