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Cash Basis - Claiming for a laptop

18/01/2018 17:15:15
Hello,

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.
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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.


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