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Carry back AIA exp. to open 2017-2018 tax year

Can sole trader about to file 2017-2018 return include imminent, delayed expenditure?

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This is a case where a sole trader will soon be preparing her 2017-2018 self assessment return, to be submitted by 31 Jan 2019. She had been planning on making AIA eligible expenditure on equipment at the beginning of 2018 to the tune of around £10,000 - so within the 2017-2018 accounting period. However she was ultimately forced to wait due to knowledge of future tech becoming available (higher spec laptop etc), and is about to make the purchase now or in very early Jan 2019 - so 8 months after the 2018 period ended.

Her 2017-2018 income was substantial, whereas her 2018-2019 will be very small, possibly under the allowance, and so making the claim in Jan 2020 will be of no AIA value. Given that her 2017-2018 return is yet to be filed, and this expenditure will only be claimed once, is there any way that this current expenditure can be included in this return?

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13th Dec 2018 06:26

Not under the AIA legislation (try reading it - to make sure I'm not lying, or wrong, if nothing else) but there are other tax saving possibilities depending on what the sole trade is and what her 2019 result turns out to be.

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13th Dec 2018 08:39

No chance.

If she makes a loss in 2018/19, she can carry it back but, if that's her only source of income, she'll waste her personal allowance.

She should maybe look at whether she might be better delaying the expenditure until 2019/20 or, maybe changing her year end if she needs to spend the money now.

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