" cost of running Richard's motor car £4710.
cost of running a motor car used by the restaurant's chef £2670.
Richard commenced in self-employment , running a restaurant. Richard' motor car is used 70% for private journeys and the chef's motor car is used 20% for private journeys."
I am confused about cost of running chef's motor car, In my opinion, it should be calculated in AMA, so it is irrelevant in tax adj trading profit. But I am not sure about it.
Ask the Tutor ACCA TX-UK
Tax-adj trading profit
Is the car used by the chef provided by the business or is it the chef's own car?
it is not mentioned,so I am confused.
it was purchased by company, so it belongs to company, I think the car used by chef(B.U%)is deductible, so we do not need to adjust it, while (private use )part should be a benefit to chef, so it is an irrelevant condition, Am I right?
There is no restriction in relation to the private use by an EMPLOYEE, we only restrict where private use is by the unincorporated trader himself / herself!
Thanks
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