Under MTD for Income Tax how do I claim Capital Allowances against Income Tax? The current information on Quickfile only deals with adding more income, not claiming capital allowances.
Also at the year end I usually claim for non cash transactions such as Use of Home as Office. I could journal these in throughout the year unless there is a mechanism to adjust the profit Quickfile generates at the year end. Can I leave it to after the year end to add this cost in?
Things like use of home as office, you can record either at year end if as you go along, it’s up to you, either way what you’d create is either a manual money out transaction on the proprietor drawings account tagged “something not on the list” to an appropriate overheads code (create one if you don’t already have the right one), or equivalently a journal to debit the relevant amount on the overheads code and credit drawings.
Capital allowances are not something you record in QuickFile - they only exist on your tax return. You can record depreciation in QuickFile for your fixed assets but this won’t be at the same rate as the capital allowances and you need to add back depreciation to calculate your taxable profit for your tax return (and then deduct the capital allowances instead).
Thanks for this. Regarding the capital allowances, I am aware about depreciation but what I need to know is does the HMRC system (accessed via Quickfile) allow the inclusion of capital allowances. I’m used to including on them on the tax return manually but I don’t know how it works via Quickfile.
How do I get an answer to this query?
Hello @MartinJ
If you are referring to the MTD ITSA returns, yes you can make manual adjustments to the figures.
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