Deposit on finance

[skyhuck]

Why bother with finance then?

 

Working capital, I would imagine.

[TimberCutterDartmoor]

Working capital, I would imagine.

 

Good point.

[hamdogg]

Just thought money better in my bank! Write it off my tax

[jules]

If you don't use all the money you sold your old chipper for you will be taxed on it as it will be income, 30% ish, unless you spend it on something else. If you use the money for your new chipper it will be tax deductable as it is a business asset ? (I think)

[hamdogg]

Why will I be taxed on it? Cash?

[jules]

Didn't know you'd sold it for cash. If it went through your books you would of been.

[skyhuck]

And probably best not to post about it on a forum

[TimberCutterDartmoor]

And probably best not to post about it on a forum

 

[Stephen Blair]

If you don't use all the money you sold your old chipper for you will be taxed on it as it will be income, 30% ish, unless you spend it on something else. If you use the money for your new chipper it will be tax deductable as it is a business asset ? (I think)

 

 

If you sell it for more than its on your books, you will have to pay tax on the profit, only then.

A new chipper is an as asset.

The % you are allowed on it will be knocked off your profit.

Also the depreciation of it over the years will reduce your tax.

The interest on the payments is also able to be claimed.

There is a limit to what you can spend on machinery and offset against tax, £100k I think.

A few years back they dropped it to £25k, that cost me a fair bit as I'd bought a lot of stuff for a job.

[hamdogg]

And probably best not to post about it on a forum

 

 

👀 your right there! It was sold for parts though!!