Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Lee GLS on September 24, 2010, 10:34:07 am

Title: wfp and tax
Post by: Lee GLS on September 24, 2010, 10:34:07 am
i am buying a wfp system, but for tax reasons can i claim 100% the year i buy it or is it classed as a capital allowance?
Title: Re: wfp and tax
Post by: darren clarke on September 24, 2010, 10:51:02 am
it is a business expense isnt it, like tools?
Title: Re: wfp and tax
Post by: Lee GLS on September 24, 2010, 11:16:32 am
Yeah but machinery the has a life sometimes is classed as a capital allowance
Title: Re: wfp and tax
Post by: SherwoodCleaningSe on September 24, 2010, 12:43:09 pm
You can put it down as part of your Annual Expenditure Allowance.  The rules have changed in the last couple of years, where as in the past you would only account for a percentage of the plant expense in the first year and then a little in succeeding years until the amount was zero, now you can claim the whole amount up to about £60 000 each year.

Simon.
Title: Re: wfp and tax
Post by: ♠Winp®oClean♠ on September 24, 2010, 10:20:30 pm
You can put it down as part of your Annual Expenditure Allowance.  The rules have changed in the last couple of years, where as in the past you would only account for a percentage of the plant expense in the first year and then a little in succeeding years until the amount was zero, now you can claim the whole amount up to about £60 000 each year.

Simon.

Which is £50k this year & going down to £25k next.
Title: Re: wfp and tax
Post by: Paul Coleman on September 25, 2010, 05:32:39 pm
You can put it down as part of your Annual Expenditure Allowance.  The rules have changed in the last couple of years, where as in the past you would only account for a percentage of the plant expense in the first year and then a little in succeeding years until the amount was zero, now you can claim the whole amount up to about £60 000 each year.

Simon.

Which is £50k this year & going down to £25k next.

Well I imagine that wouldn't cause any sole traders a problem but it does appear that they may want to phase it out at some point if they're steadily reducing it.  Pity really becausae having the choice of a vastly reduced tax bill (in exchange for paying more later) can be a big help to new starters and those who need a backdoor cash injection to re-invest.