Doing Self assessment - Where is the section for power tools?

[Too Much Slack]

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

​

​

​

​

​

​

Allowance for small balance of unrelieved expenditure

​

​

​

​

​

​

Other capital allowances

​

​

​

​

​

​

Total balancing charges - where you have disposed of items for more than their value

 

[Pete999]

Do you have an accountant yet?

 

[Risteard]

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.

 

[Richard Burns]

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.

 

[hightower]

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.

 

[Deleted member 26818]

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.

 

[Sparkie30]

Do you have an accountant yet?

Self assesment can be done without an account pete.

 

[Octopus]

Self assessment can be done without an account pete.

Yes it can but how do you know what you can claim/massage?

 

[Pete999]

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?

 

[Sparkie30]

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

I do my own accounts Pete. Do it on monthly bases and then submit it when due. Been doing it for years no probs.

 

[Pete999]

I do my own accounts Pete. Do it on monthly bases and then submit it when due. Been doing it for years no probs.

Good for you then

 

[Sparkie30]

Yes it can but how do you know what you can claim/massage?

you are right yes it can be done.

 

[Dynamoaccounts]

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
Allowance for small balance of unrelieved expenditure
Other capital allowances
Total balancing charges - where you have disposed of items for more than their value

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

 

[Dynamoaccounts]

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
Allowance for small balance of unrelieved expenditure
Other capital allowances
Total balancing charges - where you have disposed of items for more than their value

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.