Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Crystal-clear on March 10, 2014, 05:23:07 pm

Title: capital investment basic advice pls
Post by: Crystal-clear on March 10, 2014, 05:23:07 pm
So i read that its 20% of the price per year so if you buy a new work horse for say £10,000 does that mean first year its

£2000 then year 2 its £1600 year 3 £1280 year 4 £1024 year 5 £819.2
can someone who has done this pls let me know if im not far off the mark?
also if you approximate personal use to be 10%-90% does this mean you start at £9,000?

for this to take effect for this tax year ending where tax is due 31st of jan im guessing purchases must be completted before april 5th?

TA!
Title: Re: capital investment basic advice pls
Post by: Ian101 on March 10, 2014, 05:27:29 pm
or you can do it all in one year

annual investment allowance

http://www.hmrc.gov.uk/capital-allowances/plant.htm#3
Title: Re: capital investment basic advice pls
Post by: Crystal-clear on March 10, 2014, 05:51:16 pm
thanks ian,

i didnt think i could off set the whole wack?
so if i sell it ever it becomes capital gains tax or back on as income in the year?

all in one year wow...

i tryed calling hmrc today to speak to a technician but they were too busy i will call back in the week!
Title: Re: capital investment basic advice pls
Post by: 8weekly on March 10, 2014, 07:27:49 pm
thanks ian,

i didnt think i could off set the whole wack?
so if i sell it ever it becomes capital gains tax or back on as income in the year?

all in one year wow...

i tryed calling hmrc today to speak to a technician but they were too busy i will call back in the week!

It comes back as income.
Title: Re: capital investment basic advice pls
Post by: Crystal-clear on March 10, 2014, 10:14:32 pm
thanks for the heads up , so far this is pretty sweet will speak to a technician at hmrc.
Title: Re: capital investment basic advice pls
Post by: andyM on March 11, 2014, 08:13:24 am
You will only be able to claim the whole purchase price in one lump under AIA if you pay for the vehicle in full, and not on finance.
Obviously.
Title: Re: capital investment basic advice pls
Post by: Inspire Cleaning on March 12, 2014, 08:05:56 pm
You will only be able to claim the whole purchase price in one lump under AIA if you pay for the vehicle in full, and not on finance.
Obviously.

I don't think that is correct? I have just purchased a new Defender on a four year finance plan and my accountant said I could claim the whole price in one year or split 25% over four years. Didn't matter how i paid for it.

Hope he was correct?  :)
Title: Re: capital investment basic advice pls
Post by: andyM on March 12, 2014, 09:03:46 pm
Your accountant should know.
Im only a window cleaner.
Although interesting that you can claim for the full purchase price even though you will still be paying finance until 2018?
Title: Re: capital investment basic advice pls
Post by: PoleKing on March 12, 2014, 09:26:18 pm
You will only be able to claim the whole purchase price in one lump under AIA if you pay for the vehicle in full, and not on finance.
Obviously.

I don't think that is correct? I have just purchased a new Defender on a four year finance plan and my accountant said I could claim the whole price in one year or split 25% over four years. Didn't matter how i paid for it.

Hope he was correct?  :)

Your accountant is spot on (obviously)
I did the same.
Title: Re: capital investment basic advice pls
Post by: 8weekly on March 12, 2014, 10:42:39 pm
You will only be able to claim the whole purchase price in one lump under AIA if you pay for the vehicle in full, and not on finance.
Obviously.
The thing is that you typed that as an absolute fact when it is not.  :o