ButtermilkJa
Registered User
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- 660
Yes thanks! All the above helps. I'll most likely be getting an accountant anyway so I'm sure he/she will be able to sort me out.
I'm just trying to do as much as possible myself as it's only a part-time business so the turnover is not huge and I don't want to have to pay a few hundred on accounts if I can save a bit by doing a lot myself.
There may be a box to claim accelerated allowances in the first year - maybe 40% (I don't know the detail) which will resolve the most of it for you.
Where would this box be?
So is it possible to claim it as an overhead or MUST you write it off over 8 years at 12.5%?
You can't claim it as an overhead under any circumstances. You must capitalise it in your accounts ie treat is as a fixed asset on your balance sheet and depreciate it. You can chose any reasonable depreciation % you like for your accounts but in order to arrive at your taxable profit for the year depreciation will be added back and capital allowances will be claimed.
I've worked in the IT and office equipment business for many years and from experience of dealing with the revenue they are quite happy for sole traders and small companies to write off minor office & IT equipment off in the first year. They appreciate that the machines have a limited life and that a small trader isnt going to claim (nor do they really want them to) for it over 5,6,7,8 years. You dont see many STs/SMEs keeping an asset register for their fax machine, 50 euro inkjet printer etc. Its when you get into the the 10,000's that the RC become interested in capital allowances
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