Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Personal Loan to buy Equipment

    Thank you for your reply. When you say “claim monthly cost as an expense” is that including the cost of the item plus the interest, that I’m paying monthly to repay the loan? Many thanks Jose
  • Personal Loan to buy Equipment

    Hi, I am a sole trader and I am using Traditional Accounting (no cash basis). I used a personal loan to pay for a equipment (machinery). I am payment monthly instalments to repay the loan (capital + interest). I understand you can cannot claim the loan interest using Capital Allowance. How can I claim the interest I am paying for the loan? Should I put the monthly payments as trading expenses? Or should this go to Capital Allowances (AIA or writing down allowance), if so, will the interest go there as well? Or is it recommended to change to Cash Basis and claim the monthly payments as trading expenses? Thanks for your help Kind Regards Jose