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Hi, my name is Waqqas and I will be answering your question. Yes, £250 will be shown as an expense in your profit and loss account. Please note that the depreciation will be disallowed within the tax computation and be replaced by capital allowances.
Hi, your capital allowances or Annual Investment Allowance calculation is separate and depreciation is not shown as it is a disallowed expense.
No none of the disallowed expenses should form part of the tax return.
For tax purposes - depreciation does not have an impact since HMRC has replaced it with capital allowances. Depreciation is a pure accounting concept. A 5-star rating will be appreciated.
Thank you very much.