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Structures and Buildings Allowance

Is our software wrong? Or am I?

Didn't find your answer?

It's a trivial issue, but one of those that is annoying me. Software provider is unable to explain how they get to the answer that they do, which differs slightly from my own.

Qualifying expenditure incurred during the 12 months ended 31 July 2020. Expenditure of £28,400 was incurred on, say, 31/12/19 and first brought into use on 01/01/20.

My calculations give an allowance of £426 or so, but software is producing £388.

Which, if either, is correct?

Replies (7)

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By Tax Dragon
26th Mar 2021 12:17

Do you have your dates right there Wilse?

You seem to be using 9/12, whereas I make it 7/12.

No idea what the software is doing.

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Replying to Tax Dragon:
Psycho
By Wilson Philips
26th Mar 2021 12:50

Coincidence, I think. £28,400 @ 2% @ 9/12 is indeed £426.

However, the correct calculation is (I believe):

£28,400 @ 2% @3/12 (=£142) + £28,400 @ 3% @ 4/12 (=£284). Total just happens also to be £426.

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Replying to Wilson Philips:
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By Hugo Fair
26th Mar 2021 13:29

Mathematically speaking, it's not a coincidence ...
(2 somethings @3/12) + (3 somethings @ 4/12) = (2 somethings @ 9/12) : QED

More pertinently I can see nothing wrong with your calc, so why can't software supplier/support explain basis of their calc?

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By Wanderer
26th Mar 2021 13:09

Sure you've put £28,400 into the software?

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Replying to Wanderer:
Psycho
By Wilson Philips
26th Mar 2021 13:17

Checked and double-checked amount and dates

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Replying to Wilson Philips:
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By Wanderer
26th Mar 2021 13:40

Yeh, thought you would have & didn't like to ask, just I could get pretty close to the software answer using a transposition error.

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Replying to Wilson Philips:
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By Tax Dragon
26th Mar 2021 16:29

Likewise apologetic for doubting you.

I haven't plugged your figures (and dates) into our software, but I feel like I will be, as a test. I'll report back idc.

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