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"TAX ! Changes to Capital Allowances ???"

Hi,
I'm looking for some help trying to understand the new rules (not that I understood the old one's that well!) for claiming Capital Allowances.

It seems there's a new thing: "Annual Investment Allowance (AIA)"
...and I'm only just able to get to grips with "Writing Down Allowance (WDA)" ... :¬(


Anyone know how all this works?
A simple example would be good.

i.e. A new PC bought in 2008/9 for £1000 - what can I claim this year and for following years (WDA)?


Thanks in advance.





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Warhunt wrote:
> Pfff getting her to understand what a forums is would be the
> first step.
>
> Anywho when you find your answer Hmmm... let us know. I'll talk
> to her tonight and see what she says by the way. SHe probably
> knows.


Bet you forgot to ask your family accountant !...





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It would make sense to have the full expense allocated against the income for the period in which both were incurred - and then if there was a loss (though I hope that's not the case), you'd have the option to carry it forward.

Warhunt wrote:
> Anywho when you find your answer Hmmm... let us know. I'll talk
> to her tonight and see what she says by the way. SHe probably
> knows.

Thanks Warhunt,
I'm going with the answer in my second post.

i.e. In my example - I've claimed 100% AIA for a computer.
No FYA, no WDA in future years, just the one claim this year.






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Pfff getting her to understand what a forums is would be the first step.

Anywho when you find your answer Hmmm... let us know. I'll talk to her tonight and see what she says by the way. SHe probably knows.

Warhunt wrote:
> ...accountant (albeit my mother)...

Get her signed up to the Freeola Chat forums then! :¬)







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Edgy wrote:
> I thought you had til the 31st January to sort your previous
> year taxes by?
>
> Best advice if you're not sure though would be to ring the tax
> office to clarify.


Yep - you have got until 31st Jan 2010 - that's the final deadline.

But if you want to pay more accurate payments on account (I pay tax twice a year) then the sooner you get your return done the better.


I appreciate the Tax Office will have answers to everything but thought if I would see if others here have any experience.

Also the tax office only give you 'some' of the answers - in my experience they don't give actual tax advice just answers to direct questions which isn't always the same when it comes to tax! ;¬)



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Hmmm... wrote:

> I'm self-employed, trying to scrape together a living :¬)
>
> It's the time of year when you have to start getting your tax
> affairs in order - I *really* hate it!
>

I thought you had til the 31st January to sort your previous year taxes by?

Best advice if you're not sure though would be to ring the tax office to clarify.

Well my step dad is self employed and he makes use of an accountant (albeit my mother) and ends up with a brand new van every year out of his "rebate". So it might be worth the accountant to be honest.

Warhunt wrote:
> How comes your so interested? Do a lot of claiming etc?


I'm self-employed, trying to scrape together a living :¬)

It's the time of year when you have to start getting your tax affairs in order - I *really* hate it!

There's not a lot of money involved(!) so I always struggle on and do the return myself. I guess I'm missing out on lots of dodges and perhaps would be better off using an accountant?


If I've understood the new AIA then it looks like a good thing for smaller businesses - guess that means I've not understood it then!



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I am afraid I am not sure at all Hmmm...

Tax really is not my thing. Does sound better however from what I know though.

How comes your so interested? Do a lot of claiming etc?