Claiming FYA

Claiming FYA

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A photographer sets up a business in the early part of 2006/2007 and buys various equipment witha view to starting up self employment. He does not actually start doing any work until later in 2006/2007.

My question is can he claim a FYA on the equipment purchased prior to the date of his first invoice being raised.? (Just wondered whether it would be deemed as being used for his own purposes and not the trade during that time)

Many Thanks for any help
david

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By raj_choda.hotmail.co.uk
06th Jun 2007 08:01

Any PAYE income
Consider claiming the FYA and augmenting any initial losses, if your client has paid any income tax via PAYE in the tax year. This then give you scope to obtain a refund. However do the numbers to assess if worthwhile.

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By AnonymousUser
05th Jun 2007 16:51

yes if

Yes if it was bought solely for trading purposes and there was no personal use at any time.

Commencement of trading is not the date of the first sale. I think you begin trading when you start advertising, touting etc and equally when you start tooling up.

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By jayesh21
05th Jun 2007 18:22

Weigh-up
Wonder if he will be making a profit in the 1st year of trading and if it will be worth claiming FYA.

You can elect not to claim FYA if there is not a huge profit or (loss, in this case). Claim WDA from next year onwards.

Yes, by all means you can claim the FYA.

Hope it helps.

Regards

Jay

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