First Previous - Page 1 of 1 - Next Last

Sole Trader Cash Basis Expenses

  • Member
  • Practice Licence
  • 7 posts
  • # 120074

Hi all,

Just wondering if anyone could clarify the following please?

I have checked on the HMRC website which is rather a mindfield!

Sole trader, using cash accounting who is claiming business expenses for tools purchased over the year. These range from costing £50.00 to £300.00 per item. I have noted that under cash accounting you cannot claim capital allowances (apart from the purchase of a vehicle) and I am seeking some guidance as to what category a more experienced bookkeeper would use for these items please as they don't seem to be listed as an allowable expense?

Thank you in advance,

Regards Julie Detheridge MICB.

  • Member PM.Dip
  • Practice Licence
  • 16 posts
  • # 120077

Hi Julie,

 

Have a look at:

https://www.gov.uk/simpler-income-tax-cash-basis/income-and-expenses-under-cash-basis

There is a section that states "Unlike traditional accounting, you claim other equipment you buy to keep and use in your business as a normal allowable business expense rather than as a capital allowance"


Hope this helps....

  • Member
  • Practice Licence
  • 7 posts
  • # 120082

banjo_mark said:

Hi Julie,

 

Have a look at:

https://www.gov.uk/simpler-income-tax-cash-basis/income-and-expenses-under-cash-basis

There is a section that states "Unlike traditional accounting, you claim other equipment you buy to keep and use in your business as a normal allowable business expense rather than as a capital allowance"


Hope this helps....


 Hi,

Thank you so much, I searched for a while to try and find what I was looking for! Really appreciate your help. 

Kind regards

First Previous - Page 1 of 1 - Next Last
bottomBanner
loading