AIA - For laptop?

Discussion in 'Accounts & Finance' started by wizardswitch, Jan 15, 2011.

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  1. wizardswitch

    wizardswitch UKBF Newcomer Free Member

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    Hi all,

    I have been self employed for a few years now but now I am completing my tax return, I am reading about this Annual Investment Allowance. I just would like some assistance if possible, as I am somewhat unfamiliar with it.

    I want to enter details about a new laptop I purchased.

    Previously, I calculated the cost of my old computer and reduced this by the required % and entered the capital allowance in the box.

    However, the cost of my old computer is worthless and I am writing it off, but I bought a new laptop during the last tax year for approx £450.

    My question is, can I use this for the AIA? As opposed to "Allowance for small balance of unrelieved expenditure" or "other capital allowances"?

    There are 3 areas on the return for claiming capital allowances/relief and 1 for selling assets.

    Many thanks for any assistance you can provide!
     
    Posted: Jan 15, 2011 By: wizardswitch Member since: Jan 15, 2011
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  2. wizardswitch

    wizardswitch UKBF Newcomer Free Member

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    Just to add to my post above, I read the following:

    "For most small businesses, ordinary plant and machinery, general equipment, office equipment, computers, commercial vehicles (but excluding motor cars) etc are eligible for the 100% Annual Investment Allowance (AIA).

    The main restriction on this is that the total expenditure on eligible assets cannot exceed £50,000 for the year. If the expenditure DOES go over the thrershold, the excess gets placed in the Capital Allowance "pool" where the value is reduced each year by the annual writing down allowance calculated at 20%."


    I am more familiar with the "pool" method as I used this in previous years but if I can claim 100% AIA this is surely more beneficial? :|
     
    Last edited: Jan 15, 2011
    Posted: Jan 15, 2011 By: wizardswitch Member since: Jan 15, 2011
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  3. Blackberry

    Blackberry UKBF Regular Free Member

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    assuming you have spent less than £50k on other assets in the year you can claim 100% allowances on the laptop purchase
     
    Posted: Jan 15, 2011 By: Blackberry Member since: Mar 7, 2008
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  4. wizardswitch

    wizardswitch UKBF Newcomer Free Member

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    Hi Blackberry,

    Thanks for the quick reply. Yes this is my only asset purchase so looks like I qualify.

    So am I right in thinking that 100% can only be claimed on NEW assets within the year? And next year this will be reduced by 20% (or whatever the % is set at) and added into the pool as normal?

    Thanks!
     
    Posted: Jan 15, 2011 By: wizardswitch Member since: Jan 15, 2011
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  5. Blackberry

    Blackberry UKBF Regular Free Member

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    you claim 100% this year for the laptop, if you have a pool bfwd this will be at 20% or if its under £1000 you can write it off and get 100% allowance this year

    next year there will be no allowances for the laptop as they have been claimed in full this year

    You'll only get allowances next year if you purchase additional assets or if you have a pool to carry foward
     
    Posted: Jan 15, 2011 By: Blackberry Member since: Mar 7, 2008
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  6. wizardswitch

    wizardswitch UKBF Newcomer Free Member

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    OK thanks for your help, I'm a lot clearer on this now :)
     
    Posted: Jan 15, 2011 By: wizardswitch Member since: Jan 15, 2011
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