HI All. I am just about to complete my first self assesment for myself. I am confused about what capital allownce I can claim.
I use my car for private and work. It is 4 years old and cost £9000 2nd hand. My computer is old and is used for private and business. Can any one help. many thanks Kim
For the car what sort of business mileage do you do? It may be better to keep it private and claim mileage rather than suffer a benefit on the car which may end up making you worse off.
For an old computer taken into the business it's probably worth next to nothing on the open market even though it may be worth a lot to yourself.
If it was new you would be able to get 100% AIA on it but as it's an older private use asset that has been brought into the business, if you used capital allowances you could only claim the business percentage anyway going down that route.
If you are determined to take the computer into the business then the maximum price the business should pay for it should be the amount that a complete stranger would have paid you for it in an arms length transaction on the day that it was taken into the business.
Also, as the amount is likely to be very low (probably £100 - £200) I would tend to treat as a revenue expense in the same way that you will have done with your software rather than capitalise the asset which would involve you Writing down the asset over its remaining useful economic life but only claiming allowances on the business percentage of the write down.
Sure that others will have alternate treatments of the assets.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Given you are talking about self assessment I assume you are a sole trader rather than trading through a limited company?
If so then you would be able to claim a % of the cost of the car based on the CO2 emission of the car. Whatever % you claim you would need to disallow a % of the allowance claimed for the personal use element. You are also able to claim all running costs eg petrol,repairs, MOT, road tax and again disallow a % for personal use.
Re the computer then you could claim 100% FYA. Again disallowing a % of allowances claimed for personal use.
