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• # 120074
• Tue 21 Sep 2021 11:02 AM

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.

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• # 120077
• Tue 21 Sep 2021 07:38 PM

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....

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• # 120082
• Wed 22 Sep 2021 09:17 AM

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

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