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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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Hi Im full time employed and recently started a part time

Customer Question

Hi I'm full time employed and recently started a part time business ( mobile DJ) - I have registered for self assesment.. I started collecting equipment and CDs a couple of years ago.. I have records from 1 jan 2103 in paypal..how can I bring the value of these into the business as a startup cost. For 1st Jan 2013 to date I estimate £9000 costs £3000 income and it's year end soon. I started trading & registered in December 2013
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

You can bring these CDs and equipment into your business even if you bought them before you started trading. The are deemed to have been acquired on your first day of trading. However, they are not set against your profit in your Profit and Loss (P&L) account. These items attract capital allowances. It is these allowances which are set against profit outside the P&L. The book keeping entries would be debit Plant & Machinery, credit cash/bank.

In fact, the result is the same as under the capital allowance system the Annual Investment Allowance is currently set at 100%.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

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