I've just entered a replacement Freezer for a retal house. But it's not showing up as an expense against income in the summary? How can I enter this to make it deductible?

Thanks!

Very much appreciate your support. Richard

Hi Richard,

No problem at all - you're very welcome!

And you can record your expenses as and when they occur. When you use the account code for Replacement of Domestic Items, the system will recognise that this specific category is excluded from your quarterly updates.

These records will then be useful when it comes to calculating the tax deductible amount at the year end.

Tommy

Thanks, Tommy. Much appreciated.

I'm still unclear as to when I should enter the expenditure - should I hang on to the receipts for such items until year-end, or put them in as expenditure on the Monthly return, using the Account Code for "Replacement of Domestic Items, on the supposition that this will "automatically" pull them out at year-end?

If the former, not sure why the Replacement of Domestic Items appears as an option in Monthly outgoings?

I'm aware that the HMRC is a law unto itself in "Logic" matters!!

Don't want to mess up, but also don't want to miss out on claiming Allowable Expenses - have always been able to claim for such Replacements due to breakdowns, and Guidance by HMRC remains unchanged, and not getting any cheaper as we know.

Very best wishes

Richard

Hi Richard,

Just to note, the final submission work has been completed. At this stage, we are awaiting HMRC to provide API access. We understand they are currently handling a high volume of queries related to the MTD mandation rollout, which may be impacting response times for vendor support.

Tommy

Hi Richard,

HMRC does not allow the cost of domestic items to be deducted from profit is because there are precise rules about what is allowable for tax purposes. However, it is perfectly fine to record the cost for your own records, and those records will be useful when it comes to calculating the tax deductible amount. But the pure cost cannot be part of the quarterly updates.

Tommy

It doesn't help that no one seems to know how the Year-End Final Submission will be formatted. Sigh!

Does this mean I should not enter the payment as a monthly item, but wait till the year-end process and add such payments then?

Or should I enter it as it occurs, and the Software will allocate it to Capital Allowances in due course?

It's all rather confusing as it's all new! Thanks very much

Richard