Hair dresser salon equipment

[Assistant90]

My friend has hairdresser salon. She bought a lot of equipment like chairs, mirrors etc. That was a total cost of 2.000. It can be cost at all in 2010/2011 tax year ??

 

[Lancelot]

It depends whether your friend wants to capitalise it or not.

If the equipment goes into the balance sheet as fixed asset as a whole, then depreciation will be charge in accordance to the depreciation policy of the business. For tax purposes, 100% capital allowances can be obtained in the first year (limited to £100k pa)

Alternatively, it can be expensed in the P&L considering its relatively low value.

I would recommend the capital option.

 

[Scalloway]

If you friend has made a taxable profit in the 2010/11 tax year she will be able to claim 100% of the cost through her Annual Investment Allowance on her Tax Return.

 

[MyAccountantOnline]

My friend has hairdresser salon. She bought a lot of equipment like chairs, mirrors etc. That was a total cost of 2.000. It can be cost at all in 2010/2011 tax year ??

If she purchased it in 2010-11 (or is a start up business and commenced in 2010-11 and is able to treat the purchases as having been made on the first day of trading) then yes