This is my first post so, hello! and please accept my apologies if my opening query is as daft as I expect it may be! I've been a sole trader for a few years and during that time I've purchased necessary equipment such as a laptop, monitor, accessories and software (both on disk and via annual subscription). As I'm only a small-time freelancer I've filled out my self assessment tax form myself, initially using the older accrual basis and then more recently using the Cash Basis. I'd thought I had a handle on it all but whilst filling out this years I suddenly realised I have potentially been making a daft mistake.
When I first completed a self assessment I was advised by someone I trusted that I should claim for Capital Allowances (such as a computer purchase) over 3 consecutive years until the items value was all eaten up (eg. £600 computer split into 3 yearly claims of £200). I asked them what I should do if I sold or gave the PC away five years after purchasing it (so two years after the three years capital allowance period 'completed') and I was assured I didn't need to declare the sale as the original three years was up.
I recently switched to the Cash Basis and when reading the Gov documents it suggests that it's necessary to declare a gifting or sale of any item claimed as a Business Expense no matter how long it's been owned and used by the business. And if that's correct I'm wondering if it has always been necessary to declare any gifting or sale of a business expense/capital allowance however many years the item has been owned and used by the business, whether using the older Accrual Method or the newer Cash Basis?
I'm concerned I've been misled in the past and may now need to go back and rebalance things. I've searched for the answer for some time but haven't been able to confirm, and I would really appreciate some advice from those in the know! Many thanks
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