Self Assessment Newbie

Laika7

Thanks for the confirmation Dave

I reckon this is my 3rd and final major question: Capital Allowances.

Am I right in thinking that I can claim for a laptop I used for business before I went self employed at it's market value in April 2010.

For example if I bought it new for £800 in 2009. Then when I became self employed in April 2010 it was worth £500 - could I add the £500 (100% current market value) to the capital allowances section of my self assessment?

Laika7

Doing some reading up all over the place - can't seem to find a definitive answer for equipment bought before self employment (April 2010) that is then used exclusively for business use.

This thread was helpful, but didn't provide me with a full answer: forums.moneysavingexpert.com/showthread.php?t=3756785&highlight=capital+tax+allowances


Not sure if I am getting my wires crossed but it seems:

I cannot claim the 100% FYA (first-year allowance) as the item was not purchased in the first year.

But I am able to claim it under the WDA (writing down allowance) @ -20% off value per year.

So I could add £500 x 20% = £100 in the capital allowance section? :undecided

Laika7

Or is the laptop (£500) written off under the Small Pool Allowance (under £1k, brought from previous year)?

Would that even apply if I hadn't claimed the Capital Allowance in the previous period? As I was still in standard employment and did not file a self assessment for 09/10. Which is a shame as I purchased a lot of the equipment I use for my business in 2009, before taking the plunge into self-employment in 2010. :huh:

I'm going to leave this one for now - seems to be a lot of conflicting advice around the web regarding assets brought forward from previous years (before self employment). Guess this is where accountants come in very handy.

Hmmm still not sure - if anyone could clarify either way it'd be very much appreciated. My mind is starting to go into meltdown with all this new tax terminology... :wall:

Savvy_Sue

TBH, it sounds as if you'd benefit from half an hour with an accountant ... you might well find that paying one would save you money (and I'm not one, so no vested interest here!)