[red star]

just got the return back from the accountant to keep it short spent around  £10000 on  tools last year mainly for a new gardening business and couple of grand on wfp
he has only put in about half of the total expense as a deduction
is this right or could i claim back the whole 10 gs as a legit expense and offset from tax paid
thus increasing the amount i would have got  back in my tax rebate

i may be a little thick but i thought the way it worked was to pay me 20 % each month of earnings then end of the year add up whats its cost me in expenses deduct one from the other giving me a rebate figure

[Ian101]

depends how he has treated them ... this is my simple understanding of how it works

if its summit that will last 12 months or less then yup it can all be written off in 1 go for example it could be argued that a gardiners pole is shagged after 12 months of hard constant use so that can be written off in 1 go ................ however a lawnmower will easily last more than 12 months so that has be written down over a time period in your case looks like 2 years.

last year it all could have been written down in 1 go like my van was but that was the last year u could do that as the rules were changed.

[red star]

thats probably what his done then
there a item on there seperate from the expenses breakdown what he calls capital allowance i suppose thats it
so do i claim the remainder back of the next few years as the equipment slowly depreciates and need replacing

[Ian101]

thats the phrase i coudnt recall yup capital allowance ....

[red star]

thanks for that mate im all happy again now i know i can still deduct the remainder at some stage

[Smudger]

altho the rules do seem to change from year to year i still think you can claim 100% back for your equipment because you
are a small biz and the amount is under 60k

our old accountant wanted to do the same with our newest van over 4 years ( and only really wanted to do this as 'most' of his other customers did it this way ) we queried this and he changed it to 100% for that year

an accountant serves you - if your not happy with the way in which they do the accounts - question them and ask for
alternatives

a good one will always take time out and explain

Darran

[dannymack]

I always thought that you claim back 100% of your tools & so much on labour !!! Ie working van I lease I claim back 100% on that . I would change accountant !!!

[Ian101]

I always thought that you claim back 100% of your tools & so much on labour !!! Ie working van I lease I claim back 100% on that . I would change accountant !!!

lease payment is 100% allowable however if you dont lease a vehicle is has to be written down every year ... thinks its about 20% on a reducing balance

2 differnt ways of aquiring van so 2 different ways of showing on accounts