I’m registered with HMRC for MTD now and have reviewed the Tax Summary page. How do I deduct Capital Allowances from my final year profit? On the Tax Summary page there are “Add Backs” and “Deductions” but the deductions seem to be simply related to taking expenses out e.g. entertaining etc. I can’t see how the Capital Allowances are input to reduce the taxable profits for tax purposes, clearly they do not affect the retained profit carried forward into capital account as they are only an adjustment to how much tax HMRC charge rather than any change to profits.
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