Tax Return expenses help please

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allybob
allybob Registered Posts: 2 New contributor 🐸
in Chat and off-topic discussion
I am thinking of starting a photography business on the side whilst also having my current full time job. I realise I will have to fill out a tax return for the extra income I will make, and my personal allowance will have already been used in my full time job where I pay tax through PAYE.

I purchased my camera and other photography accessories a while ago, my question is can I use these as expenses for my tax return? Or as they were bought before I begun all this can they not be classed as an allowable expense?

Also, if I can deduct these from my income, my expenses are going to amount to nearly £1000 before I’ve even started, so if I don’t even make this much in the first year, can I carry the remainder of the expenses over to the next year to be deducted?

It’s been a couple of years since I finished AAT and I can’t remember much about the personal tax unit!

Thank you

Ally :-)

Comments

  • welshwizard
    welshwizard Registered Posts: 465 Dedicated contributor 🦉
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    Just a thought, could you not transfer 'ownership' to the business Dr Photgraphy equipment, Cr Capital?
  • CeeJaySix
    CeeJaySix Registered Posts: 645
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    Yes I believe you could bring into the business at market value. However it would be capital expenditure, so no direct deduction from profits, although you will have capital allowances available, which with AIA covering the whole amount will effectively be a 100% deduction. Trading losses can be carried forward.
  • KernowAccountant
    KernowAccountant Registered Posts: 103 Epic contributor 🐘
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    CeeJaySix wrote: »
    Yes I believe you could bring into the business at market value. However it would be capital expenditure, so no direct deduction from profits, although you will have capital allowances available, which with AIA covering the whole amount will effectively be a 100% deduction. Trading losses can be carried forward.
    Annual investment allowance will not be available by virtue of CAA 2001, s.38B.
  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    Has the camera "bought a while ago" been used for other purposes than the trade you wish to carry?
  • allybob
    allybob Registered Posts: 2 New contributor 🐸
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    KernowAccountant wrote: »
    Annual investment allowance will not be available by virtue of CAA 2001, s.38B.

    Why would AIA not be available?

    And yes the camera has been used for some personal photography too.

    Would all equipment such as camera, lenses, flash...etc be classed as capital allowances rather than expenses?

    thanks for all your comments so far :-)

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