Drains
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For those of you who do your own Self-assessment tax return, there's some new changes you might find useful. They're pretty major, so do read on.
For others who wash their own overalls or work uniforms, did you know you can claim an allowance for it (and it's back-datable)? clicky
Until now, you would have included a depreciation for most equipment. Now you can write it all off immediately.
For others who wash their own overalls or work uniforms, did you know you can claim an allowance for it (and it's back-datable)? clicky
How long must you keep your records?
You must keep your records for a minimum period, as described below, in case HMRC decides to make a check into your return. Note that HMRC has longer to make a check if your tax return is received after the filing deadline of 31 January.
If you send in your return on or before 31 January
If you send in your tax return on or before the normal filing deadline of 31 January, you must usually keep your records for a further year after this deadline. This applies to both online and paper tax returns.
For example, for a 2010-11 return filed on or before 31 January 2012, you must keep your records until 31 January 2013.
However, you may need to keep them longer if a check has already been started - in this case you'll need to keep your records until HMRC writes and tells you they've finished the check.
NOTE - it was 5 years until this year. It still is 5 years for a Ltd company.
CAPITAL – DEPRECIATION
You can claim a capital allowance called an Annual Investment Allowance (AIA), if you bought equipment (but not cars) during the year up to an annual amount of £100,000. Add the cost of all the equipment together and, if the total cost is £100,000 or less, you can claim 100 per cent of that whole amount as your AIA. If the total is more than £100,000, then you can claim up to £100,000 of the total as your AIA. Where you use an item of equipment for both business and private purposes, the AIA claimed has to be reduced by the private use proportion.
You must keep your records for a minimum period, as described below, in case HMRC decides to make a check into your return. Note that HMRC has longer to make a check if your tax return is received after the filing deadline of 31 January.
If you send in your return on or before 31 January
If you send in your tax return on or before the normal filing deadline of 31 January, you must usually keep your records for a further year after this deadline. This applies to both online and paper tax returns.
For example, for a 2010-11 return filed on or before 31 January 2012, you must keep your records until 31 January 2013.
However, you may need to keep them longer if a check has already been started - in this case you'll need to keep your records until HMRC writes and tells you they've finished the check.
NOTE - it was 5 years until this year. It still is 5 years for a Ltd company.
CAPITAL – DEPRECIATION
You can claim a capital allowance called an Annual Investment Allowance (AIA), if you bought equipment (but not cars) during the year up to an annual amount of £100,000. Add the cost of all the equipment together and, if the total cost is £100,000 or less, you can claim 100 per cent of that whole amount as your AIA. If the total is more than £100,000, then you can claim up to £100,000 of the total as your AIA. Where you use an item of equipment for both business and private purposes, the AIA claimed has to be reduced by the private use proportion.
Until now, you would have included a depreciation for most equipment. Now you can write it all off immediately.
nowt much there
