[windowwashers]

Hmmm interesting :

Under the present systems cars priced at over £12,000 qualify for an annual tax allowance of no more than £3,000 until they are sold, at which point relief is given for any residue of expenditure. This is a complex system that requires detailed record keeping, but is to be replaced from April 2008 by an emission based system. As might be expected, cars with the lowest emissions will attract the most favourable tax relief, but final details are awaited.
 
Businesses should carefully consider the timing of capital expenditure over the next 12 months, as the timing may have a significant effect on the tax relief that is due.

It's about time the system was altered too.  Simplification is important - as is extra tax relief.  After all, if you decide to replace equipment more frequently, you do get more tax relief from April but, of course, you would still have to show the amount that you sell the second hand equipment for.  I have always wondered what the point was in forcing businesses to spread their capital allowances over several years.  Even with vans, if you want to buy brand new and change it every year for the tax relief, what would be the problem?  You would still have to show the amount you sold it for anyway so Mr Taxman would still get a piece of the action.
Anyway, I'm unlikely to get much of a bill this coming January/July.  My turnover was pretty much the same as the previous year but by the time I've factored in loads of WFP expenditure, that should knock it down a long way - even with much of the allowance spread over several years.

I am dreading my tax bill this time

[Ian_Giles]

I classify a lot of my equipment purchases in any year , brushes, pole, hoses, pump etc as "consumables" because their life expectancy is only about a year anyway. That way you write them off against tax in one go. It gets complicated trying to write everything down by 25%  year on year. That really should only apply to things you really expect to be around in four years and lets face it thats probably not much stuff. Even ladders wear out. Vehicles are a different story.

The other sound advice was get an accountant.

ditto for me too, I do the mileage thing for my van, forgotten exactly how much it is, but you claim so much per mile for the first 10 or 12 thousand miles, and then something like 25p per mile thereafter.
But that includes everything, fuel, servicing, depreciation (or so I believe) lease payments and so on.

For my tools and equipment I put them down as consumables, poles break (well, mine do ) Batteries wear out (Don't they squeaks? ) hoses need replacing as do pumps.
For large capital investment it makes sense to be able to claim it back over a number of years, thereby reducing your tax burden for several years, if they are now going to build in greater flexibility for small businesses then great.

My turnover is increasing year on year now, so for me it may well be an accountant for next year...we shall wait and see

Ian

[windowwashers]

I classify a lot of my equipment purchases in any year , brushes, pole, hoses, pump etc as "consumables" because their life expectancy is only about a year anyway. That way you write them off against tax in one go. It gets complicated trying to write everything down by 25%  year on year. That really should only apply to things you really expect to be around in four years and lets face it thats probably not much stuff. Even ladders wear out. Vehicles are a different story.

The other sound advice was get an accountant.

ditto for me too, I do the mileage thing for my van, forgotten exactly how much it is, but you claim so much per mile for the first 10 or 12 thousand miles, and then something like 25p per mile thereafter.
But that includes everything, fuel, servicing, depreciation (or so I believe) lease payments and so on.

For my tools and equipment I put them down as consumables, poles break (well, mine do ) Batteries wear out (Don't they squeaks? ) hoses need replacing as do pumps.
For large capital investment it makes sense to be able to claim it back over a number of years, thereby reducing your tax burden for several years, if they are now going to build in greater flexibility for small businesses then great.

My turnover is increasing year on year now, so for me it may well be an accountant for next year...we shall wait and see

Ian

Ian my advice would be to get an accountant, if you do all of it yourself they look over it and correct anything thats wrong, when I got mine a few years back I got a massive cheque back as I had over paid quite alot of money that I did not know about.

[bluez]

dont know if anyone has thought of this but an accountant might be good

[Londoner]

Yes but not all accountants are good and not all accountants are cheap. Some are neither. Finding a good one is like trying to find a needle in a haystack.

[mark dew]

My accountant only charges me for the work he does. Not a set fee for doing the books. I used to pay £150 15 years ago but i only pay £40 now, cos i do most of it now and my accountant just number crunches and adds on more things to claim against.
This same accountant charges my mate £500 but he turns up with a carrier bag full of receipts etc and the accountant has to go through it all and make sense of it.
They don't need to be expensive.

[williamx]

ditto for me too, I do the mileage thing for my van, forgotten exactly how much it is, but you claim so much per mile for the first 10 or 12 thousand miles, and then something like 25p per mile thereafter.
But that includes everything, fuel, servicing, depreciation (or so I believe) lease payments and so on.


Ian

The mileage allowance is 40 pence per mile for the first 4000 miles then its 25 pence per mile thereafter.

If you are leasing a van, then it might be more better to claim capital allowances which is 100% of your vechicle costs.

Remember though you have to stay on the same tax allowance scheme, you can only change this if you aquire a different vechicle.