lil_angel Posted January 6, 2011 Report Share Posted January 6, 2011 Im doing my tax self assessment (nothing like leaving things to last minute ) and Im a little confused over my capital allowances. Last year I put numerous items in this section as they were pricey and going to use for at least 2 years. My question is do I list them again this year? Also if I do do I have to list them at a reduced price? If anyone can help would be grateful. Ive tried reading on the website but it doesnt really explain it to me. Link to comment Share on other sites More sharing options...
Happylittlegreensquirrel Posted January 6, 2011 Report Share Posted January 6, 2011 Sorry i can't offer any advice i get so confused I have to ask Elvis*Sam P.s my accountant is called Elvis Link to comment Share on other sites More sharing options...
Ruthi (borrowadog) Posted January 7, 2011 Report Share Posted January 7, 2011 Capital allowance is for large items that will last a long time. Like vehicles and machinery. Small items, even though they might last a long time just go into normal expenses. So an industrial sewing machine would count as capital, but scissors, which should last just as long, don't. Capital items, with the exception of computers, are written down over 10 years, so each year you can only claim 10% of the value. If you sell them or write them off then you can claim the balance, less the price you sold them for, of course. If you phone the tax office you will find they are very kind and helpful. Link to comment Share on other sites More sharing options...
Karen Posted January 7, 2011 Report Share Posted January 7, 2011 HMR&C guidance is here- if you click on the link to the Business Link web site it should give you some help. There are several methods of calculating depreciation and normally I'd only think about making items that cost more than about £100 a fixed asset and then obviously only if they will last more than a few years. The rules for computers vary from year to year which is a pain! If you have any doubts though, do phone your own tax office, they are usually very helpful. Link to comment Share on other sites More sharing options...
blackmagic Posted January 7, 2011 Report Share Posted January 7, 2011 The link for the helpsheet for self employed people is here http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=3182 scroll down to HS252 and download it. It will guide you through your claim. Link to comment Share on other sites More sharing options...
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