Carry Over ????

[Stace]

Please forgive me for my hopeless accountancy skills lol :blush: - but I was just wondering, if I were to put a deposit down for an item now (a buggy) then pay the rest when it is in stock (likely to be 6 weeks) - is there anyway I can carry that cost into the next financial year?

Hope that makes sense.

many thanks
Stace
xxx

[hectors house]

I would use the dates on the receipt - if the receipt is dated Feb deposit paid, I would put that in accounts for Feb, then when I paid balance eg: 10th April - I would put that date in accounts. If you collect it end of March it will have to go into this years accounts, so may be worth delaying collection.

[MrAnchovy]

Can I check you will be spending money before 6th April, but you don't have enough profit this year to use up your personal allowance/NI threshold so you want to carry it over to next year?

If you include the buggy as Capital Expenditure this year but do not claim any capital allowances, you can claim Writing Down Allowance next year. This is normally only 18% of the cost, but if the total is less than £1,000 you can claim it all as Small Pools Allowance. More information here (http://www.hmrc.gov.uk/capital-allowances/plant.htm#6).

[Stace]

Thank you for the reply - I guess that is what I was thinking - though good to get someone else's view. Just I should be earning bit more next year so thought if I could put that through next year would be better. Guess I don't need it at beginning of April and would be a delivery so should be ok.

I just heard about carry over and was not sure if this meant left over funds or could include purchased items, - Knew I should of paid more attetion at school. lol :laughing:

xxx

[MrAnchovy]

Ah, if you don't take delivery until 6th April then it is a simple matter - the whole expenditure should be claimed next year. The "trick" I mentioned using Small Pools Allowance is not simple and I would normally recommend you use an accountant for this; there is no general principal of "carry over" so whatever you have heard about that is likely to be wrong.

[Stace]

Thank you for your reply and all the info you sent Mr Anchovy - I have read through the info - a few times as my brain does not cope well with maths at the best of times :laughing: some usefull information there though - thank you.

I think I will try and put a deposit down and get it delivered after the 6th April - like you say, think it will be easier.

many thanks
Stace
xxx