Capital Allowances on computers etc

[bigspender30]

Got something through the door today telling me tax relief is available on essential business equipment. Does this apply to freelancers? Also I found something online which says you can claim 100% First Year Allowance on ICT stuff. Is this still the case? Anyone?

No idea but I'd like to know so I'm lurking..

Tax relief (Capital Allowances) has always been available to the self-employed for 'essential business equipment' (ie equipment used wholly, necessarily and exclusively for the business), but historically only on a 25% reducing balance basis.

When you say 'freelancer' do you mean self-employed, or do you have a series of employment contracts?

The 100% first year allowance for ICT expenditure by SMEs was only available from April 2000 to March 2004.

But the new Annual Investment Allowance from April 2008 gives 100% first year allowance on up to £50,000 of expenditure on any qualifying plant or machinery. Prior to 2008 there were 50% and 40% allowances available.

See here for more about Capital Allowances.

Ok I think I understand Mr Vibrating-I am self-employed and work from home. I started in August and currently use my husbands laptop for business purposes. I really need to get my own though and a basic printer but have no idea about tax etc. When I looked online, I found the info you have given about ICT equipment and wondered if that still applied.

Hmm, I wasn't very clear here, so I will restate the important point:

From April 2008, capital expenditure of up to £50,000 per year on most equipment used in small and medium sized businesses can be used to reduce the profit for that year chargeable to tax. This is called the Annual Investment Allowance and is detailed here.

For more about Capital Allowances generally, see here.

thank you MrVibrating! Will have a read.