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UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: [GQC] Tim on January 10, 2010, 08:33:04 pm

Title: Capital allowance time.
Post by: [GQC] Tim on January 10, 2010, 08:33:04 pm
In the 2008-2009 tax year you can claim 100% capital allowances, but what about the pool from the years before. Is it possible to claim 100% on that as well? Or just the normal % till it gets to £250, then claim 100%?

Just getting ready for my tax returns, as usual, late.
Title: Re: Capital allowance time.
Post by: macmac on January 10, 2010, 08:36:27 pm
That's wrong mate, only 100% on AIA (anual investment allowance). The two are different.
Title: Re: Capital allowance time.
Post by: Window Washers on January 10, 2010, 08:40:43 pm
Get an accountant would be my advice and quick ;)
Title: Re: Capital allowance time.
Post by: wightsurf on January 10, 2010, 08:46:33 pm
Here y go, this should help you  ;)

www.businesslink.gov.uk/bdotg/action/detail?r.l1=1073858808&r.l3=1073868259&type=RESOURCES&itemId=1073789928&r.l2=1073859194&r.s=sc
Title: Re: Capital allowance time.
Post by: wightsurf on January 10, 2010, 08:49:44 pm
and this one in more detail.

www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073789932
Title: Re: Capital allowance time.
Post by: [GQC] Tim on January 10, 2010, 08:52:13 pm
Get an accountant would be my advice and quick ;)

I knew someone was going to post that. Which doesn't help. If I was going to get an accountant I wouldn't have posted this? I can ring up the tax man tomorrow, but thought I might as well ask a quick question. It wasn't 100% clear to me.

So we as sole traders, do we have a Annual Investment Allowance? Because P&M includes equipment such as ladders etc.

Title: Re: Capital allowance time.
Post by: wightsurf on January 10, 2010, 08:53:28 pm
Have you looked at the second link   ;) opps first god i don't know  ::)
It tells you there  ;D
Title: Re: Capital allowance time.
Post by: [GQC] Tim on January 10, 2010, 09:00:27 pm
Yea just had a look, but can't find the bit on what to do with your capital allowance pools from the year ending 5 April 2008.

So from the previous years I've got a equipment/tools pool of £1,173.17, then from my van pool I've got £675 left on it. Now, do I continue the 25% writing down allowance on those two pools, or can I claim 100% under the Annual Investment Allowance on those two pools.

Title: Re: Capital allowance time.
Post by: wightsurf on January 10, 2010, 09:19:38 pm
From what i have read ,it looks like you add them . But if i was you i would give them a call to check. They are very helpfull.
Title: Re: Capital allowance time.
Post by: [GQC] Tim on January 10, 2010, 09:35:41 pm
From what i have read ,it looks like you add them . But if i was you i would give them a call to check. They are very helpfull.

Good point, probably a good point. :)

If so, my tax bill should be a bit lower.
Title: Re: Capital allowance time.
Post by: macmac on January 10, 2010, 10:53:10 pm
Get an accountant would be my advice and quick ;)

I knew someone was going to post that. Which doesn't help. If I was going to get an accountant I wouldn't have posted this? I can ring up the tax man tomorrow, but thought I might as well ask a quick question. It wasn't 100% clear to me.

So we as sole traders, do we have a Annual Investment Allowance? Because P&M includes equipment such as ladders etc.



I've heard conflicting oppinions on what is classed as "plant & machinery" But yes, we as sole traders are entitled to use AIA up to 50k on qualifying expenses.
Title: Re: Capital allowance time.
Post by: [GQC] Tim on January 18, 2010, 05:02:37 pm
I had a bit of time checking things out, and here is the answer to the question.

Quote
Following this transition, there is likely to be a 'capital allowance pool’ (the unrelieved 'pooled’ balance of the costs of such equipment). The new legislation will enable you to write off and claim relief for the whole of your capital allowance pool if its value is less than £1,000.

If the pool is not below £1,000, you will be able to claim a capital allowance equal to 20pc of its value at the start of each year until it reaches this level and then you will be able to write it all off. The amount claimed reduces the balance being carried forward Given the new annual investment allowance of £50,000 a year on plant and machinery you are unlikely to need to add any future unrelieved costs to your capital allowances pool going forward.