What was my car worth?

Honest John Back Room » Motoring discussion
View Threaded
Tue 4 Aug 2009 20:57
What was my car worth? - Swing Swang
I wonder if you could help - is there a way of finding out what my car was worth on December 31 last year? My accountant tells me he needs the Glass's guide figure to calculate the depreciation, which is proving difficult to find in August.

Thanks in advance,

Regards,

Swing Swang

Reply | Report as offensive | Link
Tue 4 Aug 2009 21:07
What was my car worth? - Martin Devon
I wonder if you could help - is there a way of finding out what
my car was worth on December 31 last year? My accountant tells me he needs
the Glass's guide figure to calculate the depreciation which is proving difficult to find in
August.

I guess your Accountant should charge less.

MD
Reply | Report as offensive | Link
Tue 4 Aug 2009 21:44
What was my car worth? - Avant
Your accountant would find it simpler to write the car's cost off equally over the estimate of its 'useful life' - i.e. the length of time you expect to keep it. This charges each year's profit and loss account with the benefit your business gets from the car, which is presumably much the same each year.

Thus if your car cost £20,000 and you expect to keep it for 4 years, charge £5,000 depreciation each year. If you sell it after 3 years, the book value would be £5,000, probably not too far off what you'd actually get for it - any difference being profit or loss on disposal.

This is known as 'straight line' depreciation.

Don;t worry about the tax implications - the Inland Robbers (sorry, HMRC) have their own rules for capital allowances.

Edited by Avant on 04/08/2009 at 21:45

Reply | Report as offensive | Link