iS IT better to spend has much as possible on tools at this time of tax year before the 5th april, are tools spread over 3 years and can you only claim 50% back over these 3 years.
Got news for you Bobsie, major changes are afoot, there is a good summary
here.
Let's take an example. Bob Dole’s accounting year ends on 5 April. He buys a particularly large tool for £500.
Example 1 – Bob buys his tool today, 1 April 2008.
2007/08 Bob can claim £500 x 50% = £250.
2008/09 Bob can claim £250 x 20% = £50.
2009/10 Bob can claim £200 x 20% = £40.
And so on, and on, and on…
It takes Bob a very long time to get relief with his tool!
Example 2 – Bob buys his tool on 6 April 2008.
Bob gets an Annual Investment Allowance of £50,000.
So Bob can claim the whole cost of his new tool!
For 2008/09 Bob can claim £500.
Good luck with your tools, Bob, and don’t spend more than £50,000 a year on them!