[gaza]

wfp do you show its full cost in the first year,or do you show it over a three year period as depreation


 gaza

[windows_chepstow]

Gaz,

I'm not going to be much help here and give you a definitive answer, but I think you're talking about CAPITAL ALLOWANCES.

A Capital Allowance is deducted from your tax over three years.

I think there's some sort of threshold; for example if you fork out £5000 for a WFP system, this would be claimed back over three years.

However, if you've forked out £500 for your WFP system, you'd just claim it from your turnover during the tax year it was purchased in.

The library do a good book called, 'Self assessment for the self employed' which explains all this, but it's been a while since I've read it.

Personally, I just use my common sense and my turnover and circumstances isn't complex enough to warrant an accountant.

For example I reversed into a car earlier this week and caused £200's worth of damage to another vehicle.

I was 'on duty' during the incident, therefore will get a receipt, and will class that accident as an expenditure against my tax bill.

I'm not sure if this is correct, but I'm going to do it; since I was genuinely at work when the accident happened.

[DASERVICES]

  Gaza,

  This is a good website that will help you, as far as I know in the first year
  you claim 40%. Not sure thereafter.

   http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073791420

  But if you built your own WFP you can claim 100% 

  Doug

[gaza]

Thanks lads just thinking along the lines of diy to get a lad out part time wfp just trying to find out what expenses Ican claim back. say spennd £2,000 over a year to build one up and scinnt myself,ur claim it against my tax,those who pay tax will know what I mean


  gaza

[abacus]

Hi 
if you buy the system on lease all payments deductable at time of payement otherwise I thought it was 25% of ruducing balance per year

regards grant

ps I could be wrong I leave itr all to my accountant.

[gaza]

Yeah I thought it was 25% but on reading small buiss can claim 40% on plant or machinery in the 1st year but not on cars or vans excelant link in previous posting
by Doug have to give tax helpline a ring/

gaza

[Moderator David@stives]

Gaza

It is classed as an asset so you get a capital allowance, it is a percentage every year .

It is not 3 years it is longer,

say for eg 30% of £5000 in first year = £1500 allowance

Next year 30 % of £3500  = £1050 allowance

Next year 30 % of £2450  = £ £735

Next year 30% of £ 1715 = £ so on and so on for every year after that.

Best advice to get an aacountant

Dave

[Morph]

Alternatively:

You buy it and build it bit by bit, changing bits, replacing bits, adding bits, taking bits away, etc.  As you would with any tools/materials/disposables, thus claim 100% against expenses for the tax year.
Well thats what the tax inspector told me anyway.