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Posted Fri, 21 Jan 2022 15:46:53 GMT by glock339
Hi looking for clarification if possible please. I run a small business from home (sloe trader cash basis) & I'm currently building a load of stuff such as racking for stock & an area for processing orders, all of which I'm building my self. I'm wondering what if any will I be able claim as expenses on my Tax Return such as: Actual materials used: Timber, screws, bolts, paints, glues etc Consumables used up in the process: saw blades, drill bits, sand papers, grinding discs etc Things I have built into the room which will only be used for business: packing bench, desk area, wash down sink area (with plumbing), electrics specifically installed for business use etc Hope this makes sense, I can elaborate if not. Thanks.
Posted Fri, 21 Jan 2022 16:26:35 GMT by HMRC Admin 10
Hi

You cannot claim for any capital expenses and anything else must meet the wholly and exclusivley test for business purposes.

Please see further guidance here:

Wholly and exclusively: topics covered

Thankyou.

Regards.
Posted Fri, 21 Jan 2022 17:37:51 GMT by glock339
Hi correct me if I'm wrong but I thought when you are CASH BASIS you do not use the Capital Expenses method or have I got the wrong end of the stick? On the HMRC website it states the following: "Examples of allowable business expenses if you’re using cash basis are: day to day running costs, such as electricity, fuel admin costs, for example stationery things you use in your business, such as machinery, computers, vans interest and charges up to £500, for example interest on bank overdrafts buying goods for resale" Thanks.
Posted Mon, 24 Jan 2022 14:54:35 GMT by HMRC Admin 2
Hi,

You can still claim for these items using the cash basis, but they will need to be claimed as revenue expenses instead of capital allowances. 

Thank you.

 

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