Leased Cars

Last modified 14:59, 12 Apr 2016

Overview

The software supports the calculation of the appropriate tax adjustments for leased car rental payments and does this for both pre April 2009 leases or post April 2009 leases.

These calculations are based on either the retail price or the CO2 emissions respectively.

  • For Trades, the disallowable proportion of the rental payment is calculated and adjusted for in the adjusted trading results

  • For Expenses of Management business investments, the allowable proportion of the rental payment is calculated and is incorporated into the management expenses summary.

The reference to lease cars includes Hire cars which are subject to the same restrictions.

Basic data entry requirements

In order for the software to calculate the correct adjustment for tax purposes, you need to provide a minimum set of relevant data using the data entry grids provided

From this minimum data entry, the relevant disallowable proportion of the rental payment will be calculated.

Single Accounting periods

In a period of account which contains a single accounting period, the tax adjustment for the disallowable proportion of the rental payments will be adjusted in the adjusted trading result.

If the trade is not the primary trade and there is some investment business present, a manual allocation of the disallowable rental adjustment will be needed between the trade and any non-trading activity.

Multiple accounting periods

In a period of account comprising multiple accounting periods, the software will time-apportion the disallowable adjustment and allocate it to the adjusted trading result of the relevant accounting period.

If you do not wish to use the time-apportioned values, there are over-ride fields which allow this which are only visible in a multiple accounting period scenario.

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CCH Corporation Tax

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