unclaimed capital aloowance

tco03

A few years ago 08/09 when starting up I accidentally put my van through as an expense as opposed to claiming it as capital allowance.

I notcied this when looking through my documentation last week

Is it too late to put in a claim for this.

A quick read on hmrc site says i should apply in writing if more than 12 months old

Pennywise

If you put it through as an expense, you've got tax relief on its cost. It would make no difference to the tax payable for that year. Of course, you can write and tell HMRC of your mistake if you wish, but it won't change the tax liability for that year.

tco03

I was told i could claim 100% back as capital allowance as opposed to the 20% tax relief i would have got claiming as an expense?

Have i been misinformed and id done it right in the first place :rudolf:

Pennywise

Either way you claim 100% of the cost against your taxable profits. So as a basic rate taxpayer, it saves you 20% tax on the amount paid. Exactly the same whichever way you claim it. You can't get the entire amount off your tax bill - it's tax relief on the entire amount.

tco03

ok.

So why have two separtate sections in a tax return?

Im now more confused than before i asked :rotfl:

ceh209

So why have two separtate sections in a tax return?

Because not all capital allowances gets you 100% of the cost.

You should have claimed the Annual Investment Allowance (max ~50k depending which year you're in, I can't remember for 08-09) - 100%

Then there's first year allowances on some items - 40%

Then 'standard' writing down allowances - 20%


I could go on but I think I'd confuse you...

tco03

perhaps thats it then.
cheers.