HMRC Self Assessment - Capital Allowances

strutter

Have been forced to enter figures under the following headings on my online Self Assessment for tax year ending April 2012:

Annual Investment Allowance:

Allowance for small balance of unrelieved expenditure:

Other capital allowances:

Total balancing charges

Basically - What are they in 'real' terms? The guidance on HMRC makes absolutely no sense to me whatsoever. Anything bought for expences for business use have already been claimed in full in previous tax years.

Other than new equipment every three years (Laptop and PC/Printer) all my expenses are mileage allowance and parts bought and sold to customers.

Am completely bamboozled by this. Any advise please as it worries me filling it out incorrectly.

Thanks.

Nicola_Ed

Hi

Did you read this section of the website?

http://www.hmrc.gov.uk/capital-allowances/basics.htm

Basically you do not deduct the full cost of assets in the year you buy thembut spread the cost over a number of years at a fixed % rate.

Having said that, if the rate you can claim is 100% of the cost then confusinglyyou are getting full tax relief in the year you buy the assets. I would expectyou to be able to claim full Annual Investment Allowance at 100% for the assetsyou are referring to.

strutter

Thanks for the reply Nicola.

I have indeed read the link you provided.

What causes the main confusion is Other Capital Allowances - as far as I can see I have none, yet I am forced to input a figure (other than zero) in this section of the self assessment.

Also I have not disposed of any items for more than their value for the 'Total Balancing Charges' figure. (Old computers for example that I use for work are kept for spares, or in case my current system fails).

Can I work these out easily?

Nicola_Ed

Hi

As far as I am aware you should not have to enter figures in these boxes - but I have not yet completed a return on line this year so am not familiar with any changes to the return. Have you perhaps ticked a box the effect that you will be making a claim?