100% deductable in first year?

[Steve Bullman]

i heard the other day that as of the new financial year you can claim 100% tax back on purchases in the first year. My accountant never mentioned this to me in our last visit, and i did mention buying a new truck. Anyone heard anything about this? and also does this mean there may be some better deals to be had pre-april?

[igottacabstar]

i heard the other day that as of the new financial year you can claim 100% tax back on purchases in the first year. My accountant never mentioned this to me in our last visit, and i did mention buying a new truck. Anyone heard anything about this? and also does this mean there may be some better deals to be had pre-april?

 

I think what your accountant means is that if you bought a new truck on credit you could put the full value of it against your tax in the first year - not just the repayments that you make in that year. But it would still only be 50% against your tax in the first year, as with all capital expenditure, then the remainder gets carried forward to the next year in your 'pool'.

[Steve Bullman]

no...i didnt hear this from my accountant, thats what im saying.

[igottacabstar]

I would be surprised if capital expenditure started being treated the same as general running costs - where 100% is knocked off your taxable income in the first year.

[Paul Smith]

I am sure it's 50% first year 25% 2nd 25% 3rd year?

[Yorkshireman]

nah sure sure about that steve

 

if it is an asset 50% y1 decreasing year on year

 

small stuff chainsaws & consumable etc 100 % y1

[Quickthorn]

We were talking a bit about this on another thread

 

here

 

I'd have thought your accountant would have known about this .

 

What they're doing is changing first year allowances (FYA). Currently, it's 50% of the value of a capital item in the year you purchase it, then you can write it down 25% each following year. From April 08, they'll be replacing FYA with annual investment allowance (AIA), which is 100% of the value of the item, with an annual limit of £50,000. Writing down allowance in subsequent years is dropped to 20 %. It's still in the draft stage, but I think the scheme will work the same as before, but with the changed values. If you took the 100% allowance, the item still goes into your pool of capital items, but with a value of £0.

 

If you bought your new truck in the tax year 08-09, you could claim its full value, but whether you'd want to do that depends on how much taxable income you have against which to set the AIA.

 

I can't see this making much difference to people like us. It'll help with big purchases, but remember: if you took your 100% AIA, that item will still sit in your pool; when you come to sell it (providing its not been scrapped or nicked by then), you'll be hit by a bigger balancing charge.

[Log-ologist]

i heard the other day that as of the new financial year you can claim 100% tax back on purchases in the first year. My accountant never mentioned this to me in our last visit, and i did mention buying a new truck. Anyone heard anything about this? and also does this mean there may be some better deals to be had pre-april?

 

 

 

check this

 

http://www.hmrc.gov.uk/capital_allowances/investmentschemes.htm

 

 

If your truck is electric you could be in luck,

 

 

Hey every one, steve is getting a milk float for work!

[Log-ologist]

seriously , have your saws and power tools listed as short term assets rather than capital allowances where they sit on your books for many years, and write them off in 2 or 3 years which is their life span.

Get an accountant to to the thinking.

[silvafox]

I've only heard of 100% first year allowance for environmentally friendly or eco-beneficial assetts. There is a list of items that qualify on the hmrc website.

 

I argue that woodchippers should be put on this list for the obvious reasons.