Asset - how should I declare this for my tax return?

Accounting
1

If it does not appear in expenses in the Profit & Loss Report, how should I declare this amount for my tax return?
Thank you for your support.
I’m self-employed.

2

You claim “capital allowances” for assets, either the full value as Annual Investment Allowance in one year or a fixed percentage of writing down allowances over several years. The exact details of which and how much you’re eligible to claim depends on the value and specific type of the asset, if you’re unsure you should talk to your accountant.

3

Thank you so much for the details.
Unfortunately, I don’t have an accountant, as I’m a small artist.

I bought an Apple iPad (£900) for my business. I am an artist and I use it to make my drawings on it.

Can I find somewhere how much I’m eligible to claim? As it’s not mandatory to have an accountant as self-employed, this information should be available and easy to find on governmental websites. Any suggestion, please? Thank you!

4

Here is the page:

This is well within the limit, but do take note of the need to apportion the cost if this is not exclusively for business use.

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5

If you are on cashed based accounting you don’t claim capital allowances. So if you are buying items for your business, code them as purchase or expense, rather than assets.
Your ipad could come under overheads, like office equipment would. I used repair & renewal, when I replaced my laptop, or if you use it to produce your art, you could use a 5000 code like Misc Purchase.

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6

Thank you very much all!

“From 6 April 2024, cash basis will become the default method of accounting. You must opt-out if you want to use traditional accounting or cannot use cash basis accounting.”

So, I will use a cash basis starting on 6 April 2024, as per their advice.

I hope I’ll be able to understand how the system works as well as possible by then.
Luckily I can still change, and edit the categories on Quickfile, and if cash basis is simplified for small businesses like mine, that’s very helpful.

7

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