Backdating capital allowances

28-Sep-2016 01:11

Claims may be made whether you own your home or rent it.However, if you own your home, the room in question should not be used exclusively for work.Back to the top If the expenses were incurred within seven years of you starting to trade, and the expenses would have been tax-deductible if you had incurred them while you were trading, then you can treat them as if they were incurred on your first day of trading and so claim them in addition to the other business expenses relating to the first period of trading.

This is because such advertising costs would normally be deducted from his trading profits had he paid for them after he started trading and they were incurred within seven years of trade commencing.A depreciating asset is one that has a limited effective life and can reasonably be expected to decline in value over the time it's used.Land, trading stock and some intangible assets are not depreciating assets.But in these days of flexible working and "hot desking" - where there are more employees in an enterprise than there is office space to accommodate them - and performance-driven rewards, where projects must be finished in the evening or at weekends in order to meet a deadline, employees are increasingly required to work outside the office.

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People in this position may end up incurring expenses for which they are not reimbursed by their employer. Employees who work from home at least one day a week (it is probably not worth claiming for less where heat and light are concerned) can claim a contribution towards their fuel costs, plus things like chairs, desk, computer, stationery and telephone.

What is less well known is that certain people in employment may also be able to claim some - maybe all - of these tax breaks.

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