Self employment - computer/IT expenses

immoral_angeluk

Hi all,
Starting to put together my 2012/2013 accounts and getting confused over what I can claim for IT equipment. I've read something about short life allowances and that you can't claim the full value... I'm confused now! Can someone clarify?

In jist I'm a part time SE photographer, and have in 2012/2013 purchased an ipad/various bits of photo equipment as well as an an Imac and related hardware/photoshop software so am trying to clarify really so I can get my head around it and not !!!!!! up my tax return! Either way my expenses have far outweighed my income (I only started in august) but want to make sure I get it right.

Haven't yet paid for the imac as it's on BNPL til next year so aware I can't claim that as an expense yet anyway.

I was considering just paying an accountant but what I was quoted was round about how much income I'd received so it seems a bit disproportionate until the trade picks up.

Thank you in advance!

nomunnofun

I would not worry too much about the short life asset treatment as what you have described can be claimed, with the exception of the software, under capital allowances - First Year Allowance. Although not an expense, this is a tax allowance which has the effect of reducing your profit by the full cost. The software generally could be claimed as a normal expense.

I have eventually worked out what BNPL means (obviously too old). This is irrelevant. You have purchased the imac and capital allowances can be claimed on the full cost even though you have still to pay for it. For example: Agreement signed March 2013, first payment March 2014 - claim in accounts to March 2013. (If you bought a car for £20000 on HP, the same rules would apply). Any interest that you pay on the BNPL can be claimed in the year that the interest arises.