help with tax

[royzart]

as a new soletrader how can i show the use of
my computer as expenses i have no receipt for it
its 4 years old now...but i use it to prepare my records
thank you

[Skyline D]

You can put in an allowance for use of your home as an office. As long as it's reasonable (say £10 a week) then that will be accepted.

You can introduce the computer as a business asset if you like, sticking a reasonable value on it and then claim capital allowances but it's probably pretty pointless on a 4 year old computer as it'll be more or less worthless I imagine.

[royzart]

thank you...that will help

[DocHH]

Why not use the "business account" to purchase a new computer and then write it down as you would for Capital Expenditure! It would not be unreasonable to make a loss in the first year of trading. Certainly, I would agree that you can claim an allowance of £5.00 to £10.00 per week as "Premises Expenses", dependant on how often you are at home working, which is the appropriate box on the Self-Assessment form. This would be better indicated in your accounts as a contribution to "Gas and Electricity". If you try to designate part of your home as an office there are circumstances when you could fall foul of other taxes when you sell the house. Then you need to consider how you charge "internet fees", "telephone charges", etc to the Business. How often will you need to use your car, for simple things like going to the bank, always log the mileage and charge the standard rate of £0.40 per mile against the Business. The game is to ensure you get the most out of your Business without incurring tax!

[Skyline D]

You are not going to fall foul of any "other taxes" for making a minor administrative charge to your accounts for paperwork done at home. That's scaremongering. It's not the same thing as actually running a working office in your home which might yield such issues.

If you don't actually need a new computer then buying one just so you can write it off against business expenses is pointless and counter productive but, yes, if you do want one, then certainly put it through the business.