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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I am a sole trader in the middle of filing my

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Hi, I am a sole trader in the middle of filing my self-assessment. This year I bought a new microphone, costing 1,200 gbp. Can I claim tax back on the purchase price? If so, how? Thanks
Customer: replied 1 year ago.
just to clarify - my business is in music - hence the microphone. it is not for private use).

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

This microphone is wholly and exclusively for the purpose of your business and would therefore be an allowable expense.

If the useful life is more than 2 years then consider the expense as capital and claim capital allowance (Box 23 on page SES 2). If you think it has a useful life of less than 2 years because of wear and tear then treat it as revenue expense (Box 20 on page SES 1 - assuming you group all allowable expenses and put one total, otherwise use Box 15).

Either way, it is tax allowable and would reduce your taxable profits.

I have given you box nos to enter depending on whether you capoitalise the cost or expense it in the year of spend.

You can view these box numbers on SA103s here

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874368/SA103s_-_English_Form.pdf

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Customer: replied 1 year ago.
Thank you very much!
Customer: replied 1 year ago.
All that info was very helpful.
Customer: replied 1 year ago.
I have one more question if that's okay - if I claim the microphone expense as capital allowance, will that affect my income? Will it lower my net income?

I thank you for accepting my answer. Your kind words are greatly appreciated.

If you claim the cost as capital allowance it would reduce your net income for tax purposes look at Box 28/31. This figure become taxable profit for your tax calculation.

Your reward of a bonus is appreciated.

Best wishes.