Self Assessment Q&A on 18th January » Mobile phone scenarios - sole traders with personal use » Go to message
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Self Assessment Q&A on 18th January » Mobile phone scenarios - sole traders with personal use » Go to message
My circumstance (A): "Smart" mobile phone purchased out-right & an unlimited SIM only contract.

A N Other's circumstance (B): "Smart" mobile phone all inclusive contract which includes a sum in monthly charges for the phone provided under the contract.

I chose to claim WDA on the phone (rather than AIA) based on an assessed percentage use for a combination of biz calls, voice memos, calendar, web searches etc etc. However, I do not claim for any percentage of the monthly SIM charge (unless I have actually incurred an identifiable out-of-contract cost for a biz purpose). I believe that is acceptable, but can someone under circumstance (B) claim anything similar given that they are actually paying for their phone in instalments via their monthly all inclusive contract charge?

If they can, would it be acceptable to compare the price of their contract with the price of a SIM only contract in order to establish the monthly amount they are nominally paying for the actual phone - in other words, the difference between contract prices would be the cost of buying the phone in installments?
Self Assessment Q&A on 18th January » S/trader with 2 businesses sharing equipment - cap' allow' claims » Go to message
Capital allowances advice requested: the two subject businesses fall under the same upper-level NACE classification (A), but under different lower NACE classifications within Group A.

1) Circumstance: Asset X is bought (£100) for Biz1 in Yr 1 - AIA claimed for full cost. In Year 2 , Asset X also brought into use for new Biz2 (say 50% use) and a Biz1 balance charge of £45 (= depreciated value of £90 x 50%) is brought into the Biz1 account. Equally, an asset value of £45 is placed in a Biz2 single pool.

Question: Having brought the item into part Biz2 use, am I restricted to claiming WDA on the £45 value now placed in the Biz2 single asset pool?


2) Circumstance: Asset Y purchased for Biz1 & personal use (say 50/50) in Yr 1 @ £15.0k - WDA claimed @ 8% x 50% (= £600). Written down value of £13.8k carried forward. In Yr 2 Asset Y also used for Biz2 and market value of Asset Y is £12.3k at time of Biz2 introduction - Yr 2 usage is 30% Biz1 / 30% Biz2 / 40% personal. Iis it acceptable to transfer a part interest to Biz2 at TWDV or do I have to use the market value for Biz2 introduction/use for Biz2 pooling purposes. If the latter ....

Question: Is the Yr 2 Biz1 WDA claim 8% x 30% of the WDV of £13.8k while the Yr 2 Biz2 claim needs to be 8% x 30% of the lower market value of £12.3k? [ In other words; in Yr 2, would Biz1 claim WDA of £13.8k x 8% x 30% (= £331) while Biz2 could only claim £12.3k x 8% x 30% (= £295) ]