Used equipment for work - tax deductible?

Ashgordon123

I am starting up a videography business as a sole trader. 
This requires investing in equipment, all for professional use so within the bounds of tax deductibility.

To give some extra context,  It is in my interests to spend heavily in 23/24 as I received a redundancy payment which puts me in the 40% bracket (even with the £30,000 tax free). 
I am planning to use cash accounting. 

I would rather buy used equipment. 
However an accountant friend has told me the equipment must be new to qualify for tax deductions.
I haven't  heard this anywhere else. Is this true?

[Deleted User]

I think that your accountant friend is confusing the ‘super deduction’ with AIA. Have a read:

https://www.grantthorntonni.com/insights/articles/capital-allowances---new-vs.-second-hand-machinery/

As you plan to use cash accounting the cost can be claimed as an expense. 

uknick

I think your friend may be referring to using certain Writing Down Allowances, which aren't applicable to you as you're using cash based accounting, unless it's a car you're talking about.

There's no reason why you can't buy second hand goods and claim the costs as long as they fall within the rules for self employed expenses.

jimmo

Ashgordon123 said:

To give some extra context,  It is in my interests to spend heavily in 23/24 as I received a redundancy payment which puts me in the 40% bracket (even with the £30,000 tax free). 
I am planning to use cash accounting. 

If your plan is to set business losses against employment income in order to avoid the 40% tax bracket you won't be able to use the cash basis.
See "losses" here.
BIM70005 - Cash basis: overview - HMRC internal manual - GOV.UK (www.gov.uk)

[Deleted User]

jimmo said:

Ashgordon123 said:

To give some extra context,  It is in my interests to spend heavily in 23/24 as I received a redundancy payment which puts me in the 40% bracket (even with the £30,000 tax free). 
I am planning to use cash accounting. 

If your plan is to set business losses against employment income in order to avoid the 40% tax bracket you won't be able to use the cash basis.
See "losses" here.
BIM70005 - Cash basis: overview - HMRC internal manual - GOV.UK (www.gov.uk)

Good point. 

Jeremy535897

[Deleted User] said:

jimmo said:

Ashgordon123 said:

To give some extra context,  It is in my interests to spend heavily in 23/24 as I received a redundancy payment which puts me in the 40% bracket (even with the £30,000 tax free). 
I am planning to use cash accounting. 

If your plan is to set business losses against employment income in order to avoid the 40% tax bracket you won't be able to use the cash basis.
See "losses" here.
BIM70005 - Cash basis: overview - HMRC internal manual - GOV.UK (www.gov.uk)

Good point. 

That is set to change for 2024/25, when the cash basis becomes the default option, and sideways loss relief will be allowed.