Capital Allowances/ Self employment

Capital Allowances/ Self employment

Didn't find your answer?

Is there a minimum capital amount under which equipment can be written off as straight expenses or what other rules/guidance applies to this?

Replies (3)

Please login or register to join the discussion.

avatar
By sijolees
14th Nov 2014 13:59

Whether an item is capital is a question of fact so I don't think there is any minimum. In practical terms though most tax advisers will have a figure they use. I don't claim CAs on anything that costs less than £350 but I expect most others will set the bar higher than that.

Thanks (1)
avatar
By buttinski
14th Nov 2014 14:13

With AIA

the tax effect can be the same, but sometimes capitalising an item can be of benefit as capital allowances can be delayed until a later year, when profits are possibly higher, rather than wasting them in a year when pre CA profits are already covered by the trader's personal allowance.

AIA is only available in the year of acquisition but WDAs will be available in later years on any unclaimed amount.

Thanks (1)
avatar
By airgeadagam
14th Nov 2014 16:05

Small Pools Under £ 1,000

Some guidance here as to what can be written off for small pools.

http://www.hmrc.gov.uk/manuals/camanual/ca23220.htm

and here:

http://www.hmrc.gov.uk/manuals/camanual/CA23225.htm

Thanks (2)