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Where Taxpayers and Advisers Meet

New Computer Tax Deductible?

SH88
Posts: 3
Joined: Tue Apr 03, 2018 9:40 am

New Computer Tax Deductible?

Postby SH88 » Thu Sep 05, 2019 9:59 am

Hello.
I'm registered as a sole trader and file a Tax Return every year.
This is the first year I will be purchasing a new Laptop to use solely for my self employment, as well as some software licenses.

When filing my Tax Return, can I deduct the full value of these items?
Or is it calculated somehow?

It's been a while since I completed the last return and can't remember whether or not there was a section for it, or how it was calculated.
Do I just deduct the full cost of these items from my taxable income?
Thanks in advance for any help.

Jholm
Posts: 103
Joined: Mon Mar 11, 2019 4:22 pm

Re: New Computer Tax Deductible?

Postby Jholm » Thu Sep 05, 2019 10:12 am

Claim as capital allowances and put the full amount in as Annual Investment Allowances. It will give you the full deduction as if you claim as a regular expense.

This assumes you expect to use the PC and software for a number of years, which I imagine you would.

SH88
Posts: 3
Joined: Tue Apr 03, 2018 9:40 am

Re: New Computer Tax Deductible?

Postby SH88 » Thu Sep 05, 2019 3:53 pm

Claim as capital allowances and put the full amount in as Annual Investment Allowances. It will give you the full deduction as if you claim as a regular expense.

This assumes you expect to use the PC and software for a number of years, which I imagine you would.
So I would be claiming the full amount in that one year?

Also, in a related question. I have annual software licenses and monthly software licenses too.
Are these be considered expenses?

I may be confusing everything I've read in the last few days.
I thought I could claim back a new business laptop and all software off the total of taxable income.

For example,
Taxable Earnings are £30,000
Laptop is £1000
Annual Software £500
Monthly Software Total £500

Earnings - Purchased = £28,000 = New Taxable Earnings.

Sorry I'm still getting my head around the terminology used.
Thank you for your help. I really appreciate you taking the time to reply.


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