First Year Allowances

betterbargains4u

Hi
I'm really sorry to ask such a basic question, that many of you will know already, but I have just received my first ever tax return form.
I need to know, please, what are the first years allowances that I can claim as a new small business.
Can I claim for all of the expenditure of machinery/computer/car that I have bought to set up the business?
Also...can I claim things like MOT/Insurance/Road tax?
Any help would be truly appreciated.
I cannot afford to employ the services of an accountant, as this is only a small part time business.

dejongj

Even if you cannot afford it, don't skimp on an accountant, if you have to ask these questions you most likely get it wrong and it could cost you a lot more....

Engage with an accountant on how they can pay for themselves, any half decent one should earn you their fees back easily in activities returns you would have missed. Just make certain you choose one that is either recommended and localish, but definitely one that is experience in your line of work....

dunstonh

You dont seem to know much about tax so paying an accountant could save you money.

computerbar

betterbargains4u wrote: »

Hi
I'm really sorry to ask such a basic question, that many of you will know already, but I have just received my first ever tax return form.
I need to know, please, what are the first years allowances that I can claim as a new small business.
Can I claim for all of the expenditure of machinery/computer/car that I have bought to set up the business?
Also...can I claim things like MOT/Insurance/Road tax?
Any help would be truly appreciated.
I cannot afford to employ the services of an accountant, as this is only a small part time business.

Hi BB4u

The FYA for Machinery (Van is also machinery) is 50% for 06/07.
Cars 25% (capped at £3000 in a year)
Yes you can claim all Motor Expenses when 100% use for business purpose otherwaise you have to proportion it to personal use say 20% personal, 80% business use (same goes for Car allowances).



for first year allowances see this link
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073866259



When you fill in your tax form, just write the list of car, machinery and computers etc in further details box and the HMRC will calculate it for you if anything goes wrong.