Filling tax return form - capital allowances.

aloed

Hi there,

I am completely new to the tax returns and I would like to make sure what I am doing.
I am trying to fill a tax return form as I am shutting my business and I have bought and equipment - iMac - £1264.27 and graphic tablet £178.

I am not too sure how to write it down on the return form. Is there anyone who could help me with it please?

Pennywise

aloed wrote: »

Hi there,

I am completely new to the tax returns and I would like to make sure what I am doing.
I am trying to fill a tax return form as I am shutting my business and I have bought and equipment - iMac - £1264.27 and graphic tablet £178.

I am not too sure how to write it down on the return form. Is there anyone who could help me with it please?

Your capital allowance claim will be the difference between purchase price and their value on the date you ceased trading. The closer the dates, the smaller the claim. In fact, if you bought them within a few weeks of closing down, then there's probably no difference in value at all, therefore no claim to make.

John_Pierpoint

Start here ?

http://www.hmrc.gov.uk/incometax/relief-self-emp.htm

corky2

Here you are. You should claim a balancing allowance (subject to deducting sale proceeds of the equipment or MV if you keep the equipment yourself.

http://www.hmrc.gov.uk/helpsheets/hs252.pdf

Page 18
Ceasing your business
If your business ceases you should deduct from the value of the pool the sale
proceeds for any items you sell, or deduct their market value if you keep
them. This includes items that were eligible for 100 per cent allowances.
If these total deductions are more than the value of the pool, the difference
is a balancing charge. If there is any value remaining in the pool, do not
work out the writing down allowance, but claim the value remaining as a
balancing allowance instead.