Help needed with HMRC tax return, please

[amistillsexy]

I bought a computer this year for work, so I want to offset it against my earnings in my tax return.

Should I put it down in expenses or in the 'Annual investment allowance'?

A computer is generally considered a capital item so it is not a deductible expense. Instead you would claim a writing down allowance of 18% or use the Annual Investment Allowance of up to 100% (can only be used in the year of purchase).

Provided you're self-employed, and bought the computer during the 2012/13 tax year then yes, you can enter the cost in the AIA box. Claiming costs for work equipment when employed is more difficult.

I'm self employed, and earned a pittance during 2012/13.

Thanks for your replies.

Sorry (I don't understand any of this), but what are the benefits/draw backs of claiming a 'writing down allowance' (and why 18%?) or of using the annual investment allowance?

Don't worry about the WDA, provided the item comes within AIA then you can get relief on the full amount.

info here

So, if we include the laptop as an AIA item, is it classed in the same way as other expenses, as in, the amount I spent is taken off the amount I was paid before calculating my year's 'profit'?

Yes, it just goes in a different box on the tax return. The effect is the same as any other expense.

As above, don't worry about WDA. It may have certain tax planning advantages in certain situations but the cost of one laptop is not enough to make a significant difference.

Thanks that all makes sense. Nearly finished now!