A 2018-19 tax year tool claim can now be made for capital allowances.
What are you waiting for?
Wait, what are capital allowances again?
Capital Allowance tax relief can be claimed on things that HMRC consider to be ‘Capital Expenditure’. Not regular, repeated business expenses, but the more expensive and often one off purchases. For example, the tools, equipment, intellectual property (like a patent), work vehicles or machinery that you need to do your work.
The capital allowances process means that you can deduct the total of these capital expenditure items from your gross profit (or pay). This brings down your total taxable profit and, therefore, your tax bill.
I’ve never claimed capital allowances before, have I missed my opportunity?
Not necessarily, you may be entitled to a capital allowances tax rebate from previous tax years. If you haven’t made a claim for capital allowances the value of what you have bought in the past can still be included in your claim.
For example if you are a car mechanic who bought a toolbox 8 years ago for work use this can be brought forward as long as it is still in use. You can use our free mechanics tax rebate calculator to work out how much you may be able to claim back.
I got an item as a gift, can I include it on my capital allowances claim?
Yes, you can include gifts or items you owned before you started your business. The difference here is its value is based on its re-sale amount, not what you paid for it.
Can I claim capital allowances?
You can claim capital allowances either as a self employed person, or an employee paid through PAYE. This includes incorporated companies, business partnerships and sole traders.
What do I have to do to claim capital allowances?
Now is the time to get your 2018-19 tax year capital allowances claim to HMRC. You may have misplaced the details from last year, so just let us know and we can send you a new claim pack.
There is no limit to how far back you can make a capital allowances claim for an item, as long as you have its proof of purchase and are still using it for work.
To make the most of your capital allowance claim you need a proof of purchase for each individual item. This could be receipts or activity reports from tool providers like MAC tools.
