Capital Allowances - self-employed and a bit confused...

Ashmil

Hi

I'd be grateful if someone could help a little - I understand the rules have changed re: capital allowances, and I'd like to check what to do.

07/08 was my first year of business, and the amount entered for capital allowances was £1076 - various bits of computer/music equipment I bought for work.

Now I'm doing 08/09, and I bought more equipment in that year totalling £1,742.86. I understand I put this whole amount in as my AIA, is that right?

Now there are also the following fields on my return:
- Allowance for small balance of unrelieved expenditure:
- Other capital allowances:
- Total balancing charges - where you have disposed of items for more than their value: (this will be N/A)

I've read the notes, but it's still not clear to me, and I can't get through to the helpline. What should I put in those fields, and where does the first year's amount of £1076 fit in? How should it be carried forward?

I would be really grateful for any advice on this.

Thanks,

Alex

Lyndsay101

What is your year end? the AIA is only available for post- 6 April 2008 expenditure.

If incurred post 6 April, the full £1,742.86 can be entered as AIA (assumings it's not a car).

The other boxes relate to specific circumstances:

- Allowance for small balance of unrelieved expenditure - This is where you have less than £1000 capital expenditure left in your pool of capital expenditure. If you find you have less than £1000 available for writing down each year.. rather than endlessly deducting CAs at 20% you can take the full £1000 as a capital allowance, therefore clearing your capital expenditure completely

- Other capital allowances: i think this must be the box for any non AIA allowances, so any capital expenditure carried forward from last year etc

Ashmil

many thanks - think I'm on top of it now...