Is PC tax deductible?

[Top banana]

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Hi,

Is the full amount of a pc tax deductible against my profits?

I'm thinking of buying a £900 pc from dell.

Also can you recommend a good book or websites, where to get advice on how to sqeeze the most out my profits, i.e. what stuff is tax deductible?

cheers,

[hrbs]

Hi

You can get a tax deduction for your PC cost by capital allowances.
first year allowance (2006/07 & 2007/08) at 50% of cost, 2nd year will be 25% of reduced value ie 25% x (100% -50%).
so for equipment cost £1000, year 1 = £500 allowance, yr 2 = £125 etc

re items to deduct from profits, there are quite a few posts on this forum by myself and others in finance/tax and affiliate lounge sections.

eg from how to start? - Affiliate Marketing Forum - affiliates4u

Expenses deductible: briefly includes hosting, broadband, software, website development (if not done by you), bank charges, PC consumables, relevant magazines, professional fees etc. Capital allowances (depreciation allowable for tax purposes) can be claimed on computer equipment used for the business. Also costs of setting the business up can be claimed. Existing equipment can be introduced into the business at a market value and capital allowances claimed.

oops tax please confirm thanks - Affiliate Marketing Forum - affiliates4u for other ideas.

If you need an accountant let me know.


Best wishes

Keith
HRBS
Small Business Specialists

[Top banana]

Thanks a lot Keith, that is excellent information, much appreciated

I need all the help with tax as i can get, it confuses the hell out of me!

[essdeekay]

Yeah, Keith's the man!

I think the general rule of thumb is "wholly and exclisively" for business purposes.

If you could argue the toss with your local Inspector if they ever came knocking....!

Si

[angelabx]

Computers are so cheap these days that they have almost become a consumable item so can be written off in year one especially if you buy a new one each year.