Self Assessment help

soullllllllllllll

Hopefully one of you knowledgeable people can help me.

I'm just trying to help my partner fill in her self assessment for the 10/11 tax year.

Because it was the first year she was in business, she's showing a loss.

Her net loss is around £500
But she had to buy equipment to the tune of around £300.

Can this £300 be claimed back as a capital allowance and if so, how do we then calculate the taxable profits?

Would her net loss equate to around £200 or would it be around £800?

Any help would be much appreciated.

(p.s. I know an accountant would be the easiest way but that's just not possible at the minute)

pjclar02

You can claim 100% of the £300 as capital allowances (annual investment allowance), therefore your total loss would be £800. This can be set against your other income or carried back to the prior year to reduce your tax bill (or you can carry it forward to offset against future tax bills)

Hope this helps

soullllllllllllll

pjclar02 wrote: »

You can claim 100% of the £300 as capital allowances (annual investment allowance), therefore your total loss would be £800. This can be set against your other income or carried back to the prior year to reduce your tax bill (or you can carry it forward to offset against future tax bills)

Hope this helps

It does, and it's very much appreciated.