THOSE ALWAYS ELUSIVE INCOMETAX ALLOWANCES
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A S a regular reader of "The Commercial Motor" r-k I follow all of the articles by S.T.R. with much interest. The one entitled "Are you paying too much Income Tax?" in your issue dated June 27, intrigued me more than usual.
I am a partner in a firm of haulage contractors and we run our vehicles on A licences; all the income-tax allowance we have been getting is one-fifth of cost and 25 per cent, per year for wear and tear.
After reading your article I took it to our accountant, who said he knew nothing of the Act nor of the 311 per cent, allowance, but said that he would look into it.
The accountant has since written to an authority in London, who says he knows nothing of this special concesSion for A-licensees, but he has communicated with the local income tax authority, who says the position is as follows:—
Up to April 5, 1947—that is, in the income-tax year 1946-1947—there was a special allowance of 3H per 'cent for A-licensed vehicles, which were operating long hours per week, but from April 5, 1947, the allowances are, first year, one-fifth of cost plus 25 per cent. wear and tear, made up of five-fourths of 20 per cent., and 25 per cent. per year after.
It was pointed out that we operated only A-licensed vehicles, also about your articles, one dated June 27, 1947, and the other June 28, 1946.
Could you therefore give me some fuller details of the Act referred to by you in your articles in order that I can bring proof to our accountants and convince the taxation people that we are entitled to the 311 per cent. allowance that you mention in your .articles?
I shall be interested in any further articles that you
write on this or any other subject. Cr A. WAGER_ St, Neots.
[The answer to your inquiry of July 21 is actually contained in your letter, in the paragraph where you say that "up to April 5, 1947-=that is, in the income-tax year 1946-1947 —there was a special allowance of 311 per cent. for A-licensed vehicles." I do not agree, however, that that was specifically applied to vehicles working lonk hours per week: it was actually applied to all vehicles operated under A licences. It is also true, as stated in the same paragraph, that, as from April 5, 1947, that particular special allowance has -ceased to apply and the allowance is now 25 per cent., as in the case of Band (7-licensees. There is no publication which gives this information, but surely, you cannot do better than have it direct from your own income-tax assessor.—S.T.R.1