Discuss Doing Self assessment - Where is the section for power tools? in the Business Related area at ElectriciansForums.net

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Hi all,

I am completing my self assessment and need to know where I should claim for cost of power and hand tools, are they classed as a capital allowance? If so these are my options, and my guess would be that it goes under 'other'
Thanks
James


Annual Investment Allowance:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net

Allowance for small balance of unrelieved expenditure:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net

Other capital allowances:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net

Total balancing charges - where you have disposed of items for more than their value:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
 
It will depend on the value of what you have purchased whether it will be within the Annual Investment Allowance or Writing Down Allowance, etc.

It would all be too complex to explain within a thread on a forum. As suggested, an Accountant might be useful.
 
If the tools are expected to last for more than five years (which may be a bit unlikely in some cases) then they would be classed as capital expenditure.
I am not sure of the annual investment allowance this year yet but it tends to be higher than the cost of power tools, so unless you have other expenditure that will take your capital expenditure out of the AIA then these would be part of the AIA.

However this is only my incomplete understanding of the joys of tax, so best to check on the HMRC website.
 
If the tools are expected to last for more than five years

I've recently been watching the HMRC webinars (very good for those needing tax advice and help) and pretty sure capital is anything expected to last longer than 2 years, not 5 - which would make most tools a capital expenditure.
 
My understanding, is that the lower limit for capital allowances is £50,000.
Any expense (excluding vehicles I believe) less than £50,000 is just treated as a general expense.
 
Self assesment can be done without an account pete.

I know it can but someone with knowledge will be able to help, and if you are in business who does your accounts?
 
Hi all,

I am completing my self assessment and need to know where I should claim for cost of power and hand tools, are they classed as a capital allowance? If so these are my options, and my guess would be that it goes under 'other'
Thanks
James


Annual Investment Allowance:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
Allowance for small balance of unrelieved expenditure:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
Other capital allowances:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
Total balancing charges - where you have disposed of items for more than their value:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net

What sort of value are you talking about? Are they likely to last longer than 12-24 months?
 
Hi all,

I am completing my self assessment and need to know where I should claim for cost of power and hand tools, are they classed as a capital allowance? If so these are my options, and my guess would be that it goes under 'other'
Thanks
James


Annual Investment Allowance:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
Allowance for small balance of unrelieved expenditure:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
Other capital allowances:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net
Total balancing charges - where you have disposed of items for more than their value:tearsofjoy: Doing Self assessment - Where is the section for power tools? {filename} | ElectriciansForums.net

What figures are we talking about with the tools? If small items then could be simply included within your costs. If larger or items that have a good lifespan then claiming AIA could be the way to go. The net effect on your taxable income will remain the same, just a slightly different way of accounting for the figures.
 

Reply to Doing Self assessment - Where is the section for power tools? in the Business Related area at ElectriciansForums.net

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