Depreciation on gear? (1 Viewer)

sadact

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Can I claim tax relief on depreciation of gear/wagon bought in previous years? The gear was put through in previous years as an expense? Also I have always charged 20% tax on the full invoice amount rather than having a labour/hire split (bad mistake). Can I at end of year split all my invoices to allow for the hire/Labour split? Don't have an accountant as firm is tiny compared to most on here!
 
Southernpoofter might be able to help you with that mate, ask if my carpul tunnel and depreciation of my whole body is deductable while your at it :D
 
By the sound of it tbh your never too small to have an accountant. They'll for a fixed fee submit your tax return along with all expenses that youve had & others you didnt even know you can claim on .
As far as your materials are concerned they should have been submited as a capital asset on your balance sheet which are liable for deductions over a 3 year period for depreciation rather than a trading deduction that was for the cost of the materials at the end of the financial year. In respect of your 20% deduction you dont have to wait till the end of the year you can do it at any time but it may get a bit messy on paper- i'd proberbly wait now to april & start a fresh....some like myself do the same as you & deduct the whole lot- it reduces your instant cash flow but makes for a great tax rebate-personal preferance really but again tbh if your asking these type of questions although the forum can give u insight & ideas i would strongly recommend a local accountancy firm, & depending on your trading status depends on what you need.you may just need some advice & a book keeper as a 1 man band or a chartered acct if your ltd but its all tax deductable .

As for you joe lol the carpul tunnel & body wearage arnt deductable bout any treatments , medicines or bandages are incl private physio
 
Thanks for the info! Just been on phone to HMRC (1hour waiting). The gear goes through either fully as an expense or depreciates at 18% per year. Also asked about splitting invoices for the labour/hire question and was told either way it is a taxable income. What money comes in regardless of hire/labour needs taxing.
 
If you want to split invoices sadact I take it your trading on a utr no.as a sole trader when I split invoices it was 60/40 the 40% being labour is this what your doing and selling gear for cash does not depreciate cash is king
 
Hi. Yes sole trader, does this make a difference to how I split my invoices? I have been asked a good few times by solar pv company's to split Labour/materials. So if job is say £1000, then 400 Labour is taxed and the remainder is not taxed? :wacko:
On the other hand I saw a pikey in a brand new pickup today full of scrap and made me think who is the idiot?:mad:
 
Thanks for the info! Just been on phone to HMRC (1hour waiting). The gear goes through either fully as an expense or depreciates at 18% per year. Also asked about splitting invoices for the labour/hire question and was told either way it is a taxable income. What money comes in regardless of hire/labour needs taxing.


Strange that- thought thats what i'd allready said lol:eek:
 
Get a good accountant mate. You have a taxable 'book value' that depreciates then a stock asset value so you can't claim the full amount for stock year after year is the general jist... i didnt get one for a few years but its worth every penny :)
 
Hi mate if you put a small up jar up in your price you could always ask them to deduct tax off the full amount up jar covering all tax deducted and this gives you a good tax return at the end of your financial returns if you can mange this way by over paying the tax man on each invoice the bonus creates a nice lump sum and creates you a good cash flow some will disagree with this some wont loss on stock is variable but usually as sp says all the best scc
 
yes pal if you can get away with it increase your rates terminology upjar in the meterage rates pal but not too much
 
:embarrest:Sorry pal, still lost with up jar thing?
 
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