Test your understanding
(1). Joe is self-employed. During the year ended 5 April 2015 he purchased a motor car with CO₂ emissions of 142 grams per kilometre. The motor car is used by an employee, and 30% of the mileage is for private journeys. How will this motor car be treated when calculating Joe’s capital allowances?
A It will be kept separate, with writing down allowances at the rate of 18% subject to a private use adjustment
B It will be included in the special rate pool
C It will be included in the main pool
D It will be kept separate, with writing down allowances at the rate of 8% subject to a private use adjustment
(2). During the year ended 31 March 2015 Circle Ltd incurred leasing costs of £2,700 in respect of a motor car with CO₂ emissions of 164 grams per kilometre. How much of the leasing costs will be deductible in calculating Circle Ltd’s trading profit for the year ended 31 March 2015?
A £2,700
B £405
C £2,295
D Nil
(3). Simone uses her own motor car for business travel. During the tax year 2014–15, she drove 13,600 miles in the performance of her duties, without any reimbursement from her employer. What expense claim can Simone make?
A £6,120
B £3,400
C Nil
D £5,400
(4). Janine was provided with a new petrol powered company car on 6 February 2015. The motor car has a list price of £18,900 and an official CO₂ emission rate of 137 grams per kilometre. What is Janine’s taxable benefit in respect of the company car for the tax year 2014–15?
A £630
B £3,780
C £643
D £252
(5). Bernard is self-employed, and has a motor car which is used 60% for business mileage. During the quarter ended 31 March 2015 he spent £720 on fuel for both business and private mileage. The relevant quarterly scale charge is £360. Both figures are inclusive of VAT. How much input VAT can Bernard claim in respect of fuel for the quarter ended 31 March 2015?
A £72
B £120
C £60
D Nil
Answers