Any Accountants In The House?

[Autonotiv]

Evening all,

I'm looking for some answers to some simple questions, i may be going self employed sometime this year and have a few questions R.E. Tax.

I have heard that when you go self employed you can claim tax back on power tools / hand tools / vans etc etc with in the last 3 years. That would mean i could claim for a tool i bought 3 years ago? Is that correct?

And also when you put in a claim for tax do you get the full 15% of a portion of this?

Cheers

[sone]

Try the business forum!

[Autonotiv]

sone said:

Try the business forum!

didn't know there was one!!!

[LeighW]

Autonotiv said:

I have heard that when you go self employed you can claim tax back on power tools / hand tools / vans etc etc with in the last 3 years. That would mean i could claim for a tool i bought 3 years ago? Is that correct?

Yep, but the claim you make will be based on the equipment's market value at the time it was introduced to the business, not the original cost. The capital allowance rate for these items is 20%.

[Eric Mc]

Under current Capital Allowance rules, you can claim 20& of the value of written down value of the asset each year. If you buy new assets (i.e. equiipment, machinery, furniture etc) you can claim 100% of the cost of this up to a maximum total of £50,000 in any one year.

This pretty generous allowance does NOT apply to most motor cars and buildings but it does apply to commercial vehicles (i.e vans, pick ups, trucks, lorries, diggers etc).