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Where Taxpayers and Advisers Meet

Personal Finance cash basis expense

Joined:Sun Jun 23, 2019 12:12 pm
Personal Finance cash basis expense

Postby R-Graphite » Sun Jun 23, 2019 12:18 pm

I am self-employed (sole trader non vat registered). Assume I bought a PC for my work through personal finance . The company offer finance option for payment via one of their partner lenders. Now my question is: if I use the Cash Basis accounting can I claim that as an expense and should I claim the whole amount or only the payments I made during the financial year. For example if the PC costs £3000 and I will be paying the amount to lender who I made an agreement with within 3 year obviously with interest. Do I claim the 3000£ in the financial year or only 1000£ which is the amount I actually paid in the financial year.
Note: this arrangement is not hire purchase, it is payment through personal finance provided by the supplier via a partner lender.


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