my memory's a bit fuzzy, but i seem to remember that if you buy things like computer equipment (and things which aren't utterly disposable like paper) - that they would be considered "capital allowances"...
and also that if you haven't basically made much money, that it was okay to keep the receipts of these for a number of years (can't remember how many years it is/was though - anybody know?) and these type of expenses could be used to reduce my tax bill in a future year.
anybody know more about this? or could redirect to me the right hmrc page? or know how many years that you can hold over these type of expenses for?
On another part of mumsnet somebody posted:
"You don't have to claim capital allowances in any particular year and if you don't then the pool balances carry forward indefinitely, or until you stop trading."
Is this correct or incorrect?
They also posted this bit as well:
"Special rules apply for private cars and certain other assets, but for general things like computers any amount not claimed as Annual Investment Allowance goes into a General Pool and you can claim Writing Down Allowance on the balance of this pool at the rate applicable in a future year (currently 18%), or Small Pools Allowance for the whole balance if this is no more than £1,000. Note that you can only claim Annual Investment Allowance in the year you purchase an item, so this is not he same as just "holding over" recognition of an expense, which is not allowed."
Some of what has been said in the above paragraph though, I don't understand. Just the language is a bit over-my-head. It's a bit accountancy-ese for me. I guess for me to understand such things it would need to be in more idiot proof terms probably.
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"capital allowances" - how do they work? and for how long?
14 replies
tonyf · 02/05/2013 12:11
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