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Tax-adj trading profit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Tax-adj trading profit

  • This topic has 5 replies, 2 voices, and was last updated 7 years ago by yushanshan.
Viewing 6 posts - 1 through 6 (of 6 total)
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  • November 14, 2015 at 9:26 am #282282
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    ” 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.

    November 20, 2015 at 5:50 am #284080
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Is the car used by the chef provided by the business or is it the chef’s own car?

    November 20, 2015 at 6:11 am #284085
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    it is not mentioned,so I am confused.

    November 20, 2015 at 7:26 am #284097
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    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?

    November 20, 2015 at 1:56 pm #284168
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    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!

    November 20, 2015 at 1:59 pm #284169
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    Thanks

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