Computer tax allowance

lipper

Hi. Hope someone can help.

Bought a home computer in February 2005 for £500. I use it about 50% for business use and 50% for personal use.

Am self employed and now that the 100% tax allowance has ended am wondering what amount I can claim as tax allowance.

Thanks in advance

reddevilled

Hi,

You will be able to claim a first year allowance of 50%, followed by 25% per annum writing down allowance. As there is a private use element, you can only claim the business proportion as a capital allowance.

Eg, Computer bought for say £1000

Year 1 50% FYA = £500
less: 50% private use (250)
Capital allowances = £250

Year 2 25 % WDA = 500 x 25% = £ 125
less : 50% private use £ (62)
Capital allowances = £ 63

When you sell / scrap the computer, you will get a balancing allowance / charge which will also be restricted to your business use.

Hope this helps,

Red