My potential client is a self-employed photographer, when she started her business, she also introduced her persional old camera to the business (she used for a few years for leisure), which might worth £800 in current market. She is asking me if she can claim it when she does her tax return?
I am not sure on this one...I am thinking of claim it from the Annual Inventment Allowance (AIA), is it correct?
My immediate thought is did she stop using it for leisure purposes upon commencement? In other words, there's a possible 'add-back' proportion of private use. Does she have another camera, that she reserves for leisure use? I'd hazard a guess that there is other equipment which may have a dual use now she is self employed.
My understanding is that AIA cannot be claimed on assets brought into the business that were personal items before. Only writing down allowances are available for those assets when filling in the self-assessment tax return.
Fabs
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I would claim it for the business but as metioned above only writing down allowances are available however you may be able to get full relief by writting off the pool as a small pool so effectively 100% allowance claimed!
From your post, it suggest the camera is for business use. So I could claim for it. But watch out if the client is using the camera for personal use too (which you might need to do appropriate appointment) Thanks
Tim and WKM - the camera is now purely for business use.
Figurate - this link provides me lots of useful information, I have to say that when I read through, it is very hard for me to understand. But I now know where to look. Thank you.
fabs79 & RobRJBS- thank you for the straight answer.
Kind regards,
Anna
-- Edited by Annasweetbaby on Tuesday 17th of January 2012 10:15:25 PM
