Capital Allowances for New Sole Trader

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BIG WAL
BIG WAL Registered Posts: 133 Dedicated contributor 🦉
in General accounting discussion
I have just taken on someone who registered as self-employed, and set up as a plumber in January this year. This is in addition to full time paid employment.

To keep things simple, we have opted for the first accounting period to run from 1st January to 31st March 2008. Very little business was done during this period, so after expenses there is a small trading loss to set off against against employment income tax.

Depreciation in the accounts has been calculated at 25% a year apportioned for the 3 months of trading. Is it correct to claim the full 50% FYA on the SA Return regardless of the length of the first accounting period ?

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  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    Hi Big Wall

    For new capital purchases in the period that qualify for FYA then the answer is yes claim the 50% and you do not need to pro-rata

    But for any assets that were introduced at the start then only claim 25% WDA and pro rata

    Poodle

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