Hi all, wonder if any one can help me? I purchased a camera for £750 plus a computer for £399.99 - my accountant has put these items in box 48, annual investment allowance - i thought that as these items were under £1000 these items could be off set against tax as an allowable business expense in the normal way, so I cant use them to offset against my income
Not sure where you got the figure of £1000. I would generally only expense items if they last less than one year and cost less than £100. Obviously this depends on the size of business. Did you ask your accountant why they did this?
Hi Ange, I wonder if you're referring to the < £1000 small pools allowance write off? Otherwise, unsure which £1000 rule you might be thinking of.
Anyway, if box 48 is carried down to boxes 56 and 62, the result might very well be the same - 100% write off. If there is a private use element, there would be no greater deduction by including them in expenses.
Normally, capital assets are dealt with as just that and aren't deducted with other 'revenue' expenses.
I may have slightly misunderstood the question so please rephase your question if I've got the wrong end of the stick.
From the way that you phrase the question I think that you may be mixing up financial reporting and tax.
In your accounts items may be expensed so written off through the books in the current period. The computer and camera do seem a little too expensive to write off in the books immediately but that's a different debate.
Writing these assets off through AIA will give you capital allowances of £1149.99 (call it £1150) to set off against your trading profit so reducing your profit by the full amount this year.
If you chose not to utilise the AIA (as it is an optional allowance) then the AIA is lost.
Conversely the accountant may have other plans foir the other income such as carrying back a loss which if course the AIA is nothing to do with.
The other thing that you could be mixing up here is the small pool when the entire pool falls below £1000 it can be moved to the small pool and written off in that year.
However, if the AIA is not required for anything else it seems easiest to just allocate there.
I think that you need to rephase the question a little as at the moment I'm the last sentence in relation to "offset against my income" has left me scratching my head as it could mean any number of things.
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.
looks like I'm in good company tonight and not the only one left a little confused by the phrasing of the question
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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.
Yep, she had me as soon as I saw "F" against gender in the profile.
ok, I'm a tart, I admit it.
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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.
Thanks for the reply, i am not sure where i got the £1000 figure from but i was sure that i previously had advise that i could claim for items - maybe it was around the £500 or less mark?
I will ask my accountant to clarify - it was just that I was sure that cameras and laptops could be used as a business expenses and not capital expenditure - if i am mistaken that is fine but I would be interested to hear to from some other peoples experiences although I do really appriciate your reply :)
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.
