Sat Nav and Capital Allowance?

[bookkeeping_lover]

I was wondering if I could claim FYA for my Sat Nav?

I am a food safety consultant & trainer who travel a lot and visits its clients in their place of business (in different parts of the country). A couple of months ago I finally bought a Sat Nav which has made my working life much easier. I maninly (almost solely) use it for business, when I am travelling to visit my clients, although I can use it for personal use in case I need it. (I usually don't).

My questions are:
1) Is my Sat Nav classified as an asset eligable for capital allowance (including first year allowance)? And
2) When claiming FYA, can I claim full 50% even if I have bought it a couple of months ago or do I need to calculate 50% for 65 days that I have owned it (50% x 65/366)?

Thanks for your help.

[pawncob]

Yes you can claim FYA on the satnav.
Capital allowances are based on a full year, so you claim for the full amount regardless of how long you've actually had it.
If you can plug it into and use it with your computer then you can claim 100% allowance!!!

[bookkeeping_lover]

Thanks pawncob for your help.

So you mean since the sat nav can be connected to a laptop it is classified as a computer and is eligable for 100% allowance?

Note: I can use my sat nav using my laptop (via a USB port) and I can update it online using my TOMTOM Home programe.

[robbob]

Hi pawn

Can you clarify the 100% allowances bit please. I thought 100% computer allowances ended a while ago.

[mano786]

Robbob is quite right to question the 100%.
Pawn - are you referring to the Annual Investment Allowance of 100%? If yes, then fact of attaching to laptop/computer is irrelevant - you get 100% on first £50,000 spend from 1 April 2008.

[bookkeeping_lover]

Now, I know that I can't claim 100% First Year Capital Allowance and the maximum amount is 50%.

My main question was - and still is - whether or not Sat Nav is an eligable capital expensiture for First Year Capital Allowance? I just don't want a tax officer to tell me that I could use A-Z or AA maps instead of buying a SatNav!!!

Thanks

[robbob]

Hi bookkeeping.

I would be fairly confident that you can claim your 50% FYA on the Sat Nav.

You just might have to be a little bit careful if you have private use of the sat nav there could be addback implications 9self employed) or P11D implications if you are a company director/employee

If what pawn is saying is right that these are classed as computer equipment if the requiremment is met then it may be that any trivial private use can be ignored.(This is the case with private use of computers) I am not 100% sure about this without checking though.

[pawncob]

I did a quick link to find the info on 100% allowances, but today I can't find it!
Looks like they ended in 2004.

[robbob]

Hi pawn

Yes the 100% computer allowances ended a while ago in relation to computers so the claim will be resticted to 50% unless purchase was after 6/4/2008 in which case the new 100% AIA would be available.