Sole Trader Expenses - Computer Purchase?

See above. If the modification enhances the performance of the computer, or extends its useful life, it should be capitalised. If it just maintains the performance, you can write it off.
 
There are two aspects to be considered - the nature of the item and materiality - when considering whether or not to treat as a capital or revenue item for tax purposes.
A 10 euro calculator has all the characteristics of an asset which should be capitailsed except that its cost is such that no-one will have a problem with you writing it off immediately. No exact figures are given by revenue or set down in law afaik so it comes down to a judgement call in each case. Some items are very obviously one or the other, and in certain entities' accounts/tax comps a laptop will be a borderline case. I don't think it comes down to a matter of conscience.
 
hmmmm.........I think I've got 3 computers on my books at the 12.5% capital allowance. Only one is still (bought last year) with me! (am a Sole Trader)
 
It should be noted that capital allowances are only allowed if the asset is in use on the last day of a businesses accounting period. Assets disposed of during the year are not entitled to capital allowances for that year. Assets bought even the day before the last day of an the accounting period qualify for a full year's capital allowances. Indeed if the sale proceeds of a disposed asset exceed the Tax Written Down Value (TWDV) a Balancing Charge will arise on the difference. Also leased assets do not qualify for capital allowances, while hire-purchased assets do.
 
:D Surprised to see this thread brought back to life after so long in the dark, but hey, that's the great thing about a discussion forum...

Anyway, just to clear things up a bit (if it helps), I've just got my accounts back from a professional accountant and she says that I must capitalise the laptop over 8 years regardless. However, I am free to sell it at any time and any money I make back is adjusted off the allowances I've claimed and it eventually balances itself out.

I think that's the gist of what she was saying.
 
You will get a balancing allowance if you sell you laptop for less than its tax written down value (Cost less no. of years of capital allowances) so you won't lose out.
 
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