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Paul Paranoia
9th April 2003, 16:27
This 100% Tax Relief on IT Purchases.

Do I calculate my corporation tax and then knock off the cost of my new PC, or, do I knock the cost of the new PC off of company profits and then calculate the corporation tax?

Mark Snowdon
9th April 2003, 18:41
You calculate profits and tax without the relief then fill in the right bits of your ct600 to get the deductions

Debbie ITAccounting Online
9th April 2003, 19:35
You can deduct the 100% tax capital allowance from the profits before calculating the corporation tax.

You still have to make the claim for the capital allowance on the CT600 (Company tax return).

ITAccounting Online - Truly Interactive Internet Accounting (http://www.itaccounting.co.uk)

Paul Paranoia
10th April 2003, 02:54
Cheers peeps.

ChevyChase
10th April 2003, 03:03
Being a numpty and steadfastly refusing to learn how all this crap works (otherwise why would I hire an accountant?!) - break this down for me:

If I spend 5 grand on a PC - how much would it *really* be costing me, presuming a turnover of about 60k and profits of about 30k?


....there must be an easier way to do this crap.... :(

Debbie ITAccounting Online
12th April 2003, 07:41
Assuming taxable profits without purchasing computer equipment £30000, corporation tax would be £4750

Same taxable profits £30000, less £5000 purchase of computer equipment, corporation tax on £250000 would be £3562.50

ChevyChase
14th April 2003, 11:57
Ta for that...

So it's a little help then. :\