Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: CF Facilities on March 03, 2013, 05:35:11 pm

Title: capital expenditure.
Post by: CF Facilities on March 03, 2013, 05:35:11 pm

I'm just coming to the end of first year sole trader. Just thinking ahead to my accounts and wondered if expenditure for my van (my biggest expense) comes off my year one income or just 25% for first four years as capital expenditure. Is it my choice how I do it?
Thanks in advance.

Title: Re: capital expenditure.
Post by: king marko on March 03, 2013, 06:14:21 pm

I'm sure it's classed as an asset and will be depreciated accordingly

Title: Re: capital expenditure.
Post by: Moderator David@stives on March 03, 2013, 06:16:15 pm

All of it this year, the capital allowance is £50k this year i think, this is where accountants come into there own.

My accountant has just saved my a few thousand, even though i thought I had everything covered

Title: Re: capital expenditure.
Post by: ♠Winp®oClean♠ on March 03, 2013, 06:31:49 pm

You can either-

Use AIA (annual investment allowance) to offset the whole amount in one year or...

Write it down over a number of years via capital allowance.

Your own personal circumstances will dictate which is best for you.

Title: Re: capital expenditure.
Post by: AuRavelling79 on March 03, 2013, 06:50:59 pm

Quote from: ♠Winp®oClean♠ on March 03, 2013, 06:31:49 pm

You can either-

Use AIA (annual investment allowance) to offset the whole amount in one year or...

Write it down over a number of years via capital allowance.

Your own personal circumstances will dictate which is best for you.

Quite right - I bought a new van this time last year and chose to write off what suited me in year one. (I think I wrote off all of it, I'll check with the Mrs. as she does my books)

Title: Re: capital expenditure.
Post by: Moderator David@stives on March 03, 2013, 06:51:43 pm

just checked it was £25k last year, £250k this current year