Re: FN-FORUM: Self-assessment and tax return: where do you list pc/laptop purchases?

date posted 25th April 2008 12:46

> Am self employed and filing my self assessment tax return for the
> first year myself, online.

Worth seeing if your local tax office does a free half-day course on how
to fill in and claim. Worth the time going if they do.

I have "Self Assessment for the self-employed" a workbook from the Inland
Revenue's business support team. We worked through it in our training,
asking the tax adviser questions as we went along.

> I know that purchases of equipment such as laptops or computers, above
> a certain value, don't just go under expenses and instead are claimed
> year on year with a depreciation of their value.

Capital costs are indeed claimed via a system of depreciation under
Captial Allowances. I can give examples or the allowances I claimed for my
PC if you like.

> How is this calculated though?

Quite complicated. You can claim tax relief on a percentage of the capital
cost (used to be 50% in the year of purchase, then 25% for later years,
calculated on the remaining unclaimed value), reduced by an amount for any
non-business use (in the ratio of business use to non-business use in
terms of time).

> What "box" do they go in?

If your turnover is less than £15,000 it all gets mashed into the "quick
return" expenses & allowances box. Otherwise capital allowances.

> I bough a laptop last year for business, and is now broken, can I
> continue to claim for it or not?

Probably, if it was a valid business purchase.

Your tax office will be able to advise over the phone.

Cheers!

Anthony
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