Cash Basis - Claiming for a laptop

18/01/2018 17:15:15

I'm using Cash Basis and my business started in January 2015.

I bought a laptop in 2014 for £430, and I've been using this laptop since January 2015 to teach private language classes (approximately 20% of use), as well as for personal use (approximately 80% of use).

Do I simply claim for this as a business expense under the Cash Basis system? I understand that I would need to use the current market value for the laptop, and take into account the amount of time it is used for business purposes, as opposed to personal use.

Cash Basis - Claiming for a laptop

18/01/2018 19:16:46
Hi there, thanks for your question.

Yes, you would determine the market value of the laptop for tax year 2016/2017 (6th April 2016 - 5th April 2017), and then because you say 20% of your usage is for your business, you would be claiming 20% of the market value as your allowable expense.

This would be declared in the self-employed expenses box "Telephone, fax, stationery and other office costs".

For further info about this, you can consult the HMRC manual HS222.