I am aware that you can write off the balance of a pool once it goes below £1000, but do you have to do it once it does.
Client has £550 in the pool (machinery) that I did nothing with last year as the business started late Feb 15 and that was brought forward. There's no tax to pay 15/16 so can I write down £99 this year and the remaining £451 next year (if any tax is due) or would I b/ have to write down the full £550 this year or c/ only be allowed to write down at 18% until cleared?
A van was introduced during the year at £3500, which had been used in a previous Ltd Co (different business altogether) I assume this is two different pools, so wouldn't affect the previous pool?
TIA
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
it's optional to write off / down and as you suggest there are many scenarios where it would not be beneficial to write off small claims balances or even use WDA's at all during a period. This is one of the key elements of tax planning.
However, for the scenario you describe the van would go into the general (main) pool so the balance of the pool in reality remains above £1k so you would lose the ability to write off the pool until subsequent WDA's take the pool back below £1k.
Of course in a different scenario the £3.5k could be written off the the AIA leaving the sub £1k which could be transferred to small pool and written off but that seems not to be the scenario that you are looking at.
HTH John and appologies for the delayed reply.
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.
