tax on software

[SLEE]

If i buy some software how much of the cost can i claim back on my tax at the end of the year?

[Shirker]

If its for doing your job then all of it - its a cost of business. If you spend £300 you can claim £300 as a cost.

[SLEE]

excellent thanks

[SLEE]

is there a list of things a web designer can claim and the percentages? for example i know that any computer equipment you can claim 40% in the first year. would be really useful if there was a simple list of things that i can use

[Matt]

is there a list of things a web designer can claim and the percentages? for example i know that any computer equipment you can claim 40% in the first year. would be really useful if there was a simple list of things that i can use

40% of what? The price you paid for it, or the price its worth now? That would be useful.

[Shirker]

The rules on capital allowances for equipment have changed recently. E.g you used to only be able to claim a percentage of the cost each year but in some cases you can claim all 100% in the first year. We just did that for two pickups. Not sure if there's any difference between self employed and ltd for that. Have you tried phoning your local Business Link?

[SLEE]

afaik it is 40% of what you paid for it but that was last year so ill try and find out

[net-curtains]

I've been able to claim 100% for computer related equipment this time - usually you claim a percentage based on the value over a few years but the government allowed businesses to claim for the whole amount for the last tax year. Not sure if they're going to repeat it again - hope so.

[sarahA]

If you spend less that X amount (sorry I don't know how much) in a year then you can claim 100% tax relief on capital allowances ie. permanent (or usually permanent) expenses such as computer equipment, furniture etc. Although, as net-curtains mentioned, it was for the last tax year, not seen it there before then again not paid much attention before.