Self Assessment - what can I claim for?

cannon303

Hi, I'm filing my self assessment online and I've just worked out to my horror that certain items such as computer equipment cannot be 100% claimed as an expense. This is a big problem. I have charged £1100 for a job, knowing that I need to buy £1000 worth of software to do it. I am happy to 'make' £100 out of the deal and get charged the subsequent tax on it. I now find that I can only claim 50% of the £1000 as an '[FONT=&quot]capital allowance[/FONT]' in the first year and therfore I will be charged tax on £500 plus my £100 profit. This therefore means that any profit has been wiped out by the taxman and in some circumstancs (as this is only one example) I am paying the taxman more than the job is actually worth!

So my question is Is there somewhere online that I can go to that lists what I can class as an expense and what classes as a capital allowance?

Also some capital allowances can be claimed back at 100% if they are green or used recycled materials (unless i've got this wrong). Well petrol for my car obviously isn't green but I also use my bicycle when I can to visit clients - so does repairs to my bike class as being green?

I thought I had all this sussed but now I'm so confused.

Thanks for looking and any feedback would be much apreciated!

CC

ceeforcat

Capital allowances are available for assets that you use in your business which have a 'life'. Are the assets used in your business? No! They are a cost of your sale i.e. your turnover is £1100, your cost of sale is £1000 and a gross profit is £100.

I think you should seek professional advice before completing your Self Assessment as I fear you could well pay more tax than you should.