HMRC have created a "ready reckoner" to help those who have accounting periods which span the date of the change in in the Writing Down Allowance (WDA) for business expenditure on plant and machinery changed from:
- 1 April 2008 for companies, and
- 6 April 2008 for the self-employed.
The rates on the change as follows:
- from 25 to 20 per cent for general plant and machinery
- from 6 to 10 per cent for long-life plant and machinery
A transitional, hybrid rate has to be used for those business whose chargeable period spans the relevant change date. The ready reckonereckoner will make this calculation for any business affected.
The hybrid rate is arrived at by calculating:
- the rate for the portion of the chargeable period falling before the change date
- the rate...