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Expenses and AIA Question
PrincessPanty
Posts: 1 Newbie
in Cutting tax
Hi there - quick question, would appreciate anyone who can help.
Assuming anything put into AIA can't also be put into expenses? Or is expenses an overview of everything and then AIA just the purchases of business equipment?
Assuming anything put into AIA can't also be put into expenses? Or is expenses an overview of everything and then AIA just the purchases of business equipment?
0
Comments
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blimey serious confusion
if you capitalise a purchase, then it appears in the profit and loss as a depreciation charge, not as a lump sum expense.
however, for tax purposes, the taxable profit is not net of depreciation, instead you deduct either the AIA value or, if ineligible for AIA, you deduct the relevant WDA.
if none of that makes sense, you have a lot of reading to do (or leave it to your accountant)0
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