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Help with tax return - capitol allowances
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webby01
Posts: 2 Newbie
in Cutting tax
Could anyone help me with my tax return...
Some rough figures
Income £20,000
Expenses £13,500
Purchase of van £7500
As you can see quite a loss. Am I best carrying forward the van and if so how do I claim it againt following years?? Or do I claim a loss and carry that???
thanks
tom
Some rough figures
Income £20,000
Expenses £13,500
Purchase of van £7500
As you can see quite a loss. Am I best carrying forward the van and if so how do I claim it againt following years?? Or do I claim a loss and carry that???
thanks
tom
0
Comments
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Hi Tom,
What is the nature of your business?
Is this a new venture?
Vans and very low carbon cars can be written off against profit immediately if needed and not spread over future years..
You need to explain what your other expenses are, but they too are likely to qualify for immediate write off.
However by so doing you will be losing the benefit of your personal allowance.
The idea of self employment is too make a profit - so do you have a similar trade on which you have been taxed against which you can claim this new investment?
Some suggestions in this recent thread:
https://forums.moneysavingexpert.com/discussion/31989740 -
I wouldn't bother claiming the allowances for the van this year as your personal allowance will cover the remaining profit. Best carrying forward the van and claiming the allowances in future years.0
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It depends on whether you have any other taxable income during the same tax year as the van purchase and expenses.
Remember that whilst you can get full allowance for the van in year of purchase - if you don't, you can only get 18% p.a. reducing balance in future years - you can't simply choose to take full relief for it next year.
Also don't forget the impact of a potential loss on any working or child tax credit entitlements - claiming the full costs and causing a loss may "waste" your personal tax allowance, but could mean a much higher tax credit award meaning real money in your pocket now.0 -
It's not a new venture, just a bad year. I am a sole trader. I have no other taxable income. The other expenses are just running costs plus some tools and equipment.
What is the best way to claim the van in the following years. There is no point in claiming any in the year mentioned? Or can I claim it all and take a loss to write off in following years? Or doesn't it make much difference?0
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