Capital Allowances

Hi all,

With regards to capital allowances, if i have just set up as a sole trader and use my personal computer and desk etc for work purposes, can i include these in my capital allowances?

I did not buy them for business, i already owned them.

Please help.

Thanks

 

Yes you can.

 

I always suggest writing out a list of equipment and putting a realistic value at the side of each item. Give this to your accountant and it is then used as part of your overall investment into the business at commencement.

Doing this saves any arguements from HMRC later on about exactly what you did put into the business and at what value.

 

hi
so if you was a sole trader and you ran a hardware store and took £720 off tools which i was going hire out and £600 which was going for resale would any of this go into the capital account

 

Yep, it would. On one side of the balance sheet these tools are your stock-in-trade. On the other side they are an increase to Owner's Capital.