[joe34]

Hi ,
I know I have a big tax bill coming my way next year  so I  was just wondering if I splashed out and got a brand new machine say 3,4 grand is it 100% tax deductable?

[Paul Clapham]

It should be , but as with all of theses questions , ask your accountant!

[Mike Halliday]

Got to agree with Paul, it's a complex issue..... best ask your accountant.

But if I had to give an answer ...... If you earned 4 grand you would have to pay 1 grand of it to the tax man but you are not earning it you have spent it so that 4 grand machine actually cost you 3 grand

But it more complicated than that so talk to  an expert

[MarkSutcliffe]

Items for the sole use of your business are tax deductible as it means you have made less profit this year..

same as buying anything that's for the business..

[Craigp]

If you spend 3k on a machine you will now not pay tax on that amount, so your tax bill will be £870 lower (not paying tax on the £3k at 29% - [tax plus NI] )

You will not have a whole 3k straight off your tax bill if that was what you thought?

PS I'm assuming you put the whole figure in as Annual Investment Allowance and not Capital Allowance pool.

[Adam P]

plus you're also most likely doing your accounts so asking this question now due to the date, and haven't realised that the tax year you're doing for has long gone, so if you buy a £4k machine now, that'll come off the profit for next tax return, and you'll still be faced with this years tax bill