Renovated decking as an expense?

[beckyteddy]

We have just spent nearly £200 cleaning and staining our decking to make it non-slip and safe for the children to play on. Can I put this on my accounts as an expense? Maybe I could put a percentage of it down?

The minded children could not have used the garden at all if the work was not done as the decking leads out onto the garden, so I was essential work although we will benefit from the work when I'm not minding too.

Anybody know the rules on this one?

[Minstrel]

I think i would be inclined to say no.

Only because i liken it to replacing a carpet in your home. It would come under wear and tear which you claim 10% for.

[beckyteddy]

Humm, good point Minstrel.

How about the purchase price of the pressure washer? It will be used now to maintain the decking and I wouldn't need to be so vigilant if it wern't for childminding health and safety! or do you still think that would come under wear and tear?

[aly]

I think i would be inclined to say no.

Only because i liken it to replacing a carpet in your home. It would come under wear and tear which you claim 10% for.

i would say the same...

[Alibali]

Humm, good point Minstrel.

How about the purchase price of the pressure washer? It will be used now to maintain the decking and I wouldn't need to be so vigilant if it wern't for childminding health and safety! or do you still think that would come under wear and tear?

We are allowed to put through a reasonable cost for carpet cleaning too, so pressure washer hire may be the same?

[rickysmiths]

The thing is the mindees havie not caused the decking to need cleaning the way they do with carpets.

Wouldn't you clean and maintain safe non-slip decking for the safety of yourself and your own family anyway?

[Chatterbox Childcare]

I know that you can claim for like for like when replacing garden items but am unsure about actually sealing it. Call the HMRC and get it from them (don't forget to get a name)

As to the pressure washer I would be inclined to say yes to it all as you need to keep it clean - again ask HMRC

Don't forget to come back and let us know what they say :D

[MrAnchovy]

If you mind 5 days a week I would suggest that 5/7 of the cost of maintaining the decking is incurred wholly, necessarily and exclusively for a business purpose and so you could claim this proportion.

Similarly if the pressure washer is only used to clean the decking, 5/7 of the cost could be claimed within the Annual Investment Allowance.

The comparison with the 10% wear and tear allowance is not relevant: this covers the cost of replacing carpets (and other items), not cleaning (maintaining) them.

I don't know everything about your situation though so please do not assume that what I have said will be correct in any particular case.

[Bridey]

MrAnchovy - please excuse me as I'm a normally intelligent human being until it comes to financial matters. Please could you explain in very simple language what an Annual Income Allowance is? I'm not sure I understand the official definition.

Does it mean we can claim the whole amount (or a proportion thereof accordingly) of equipment, rather than going down the Capital Allowance depreciation route, for up to a certain amount a year? And does it apply to us self employed childminders?

[MrAnchovy]

Sure :)

Firstly, there are no special rules relating to capital expenditure for childminders, you are just the same as any other self employed person. The information at business link (http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1086445219) is a good place to go for more detail, but I'll give two main points which should answer your question:

If you buy virtually anything that you can claim Capital Allowances for except cars, you can now claim it as an Annual Investment Allowance up to a cap of £100,000 in the tax year (£50,000 in 2008/9 and 2009/10 if you want to resubmit!).

Anything you have already bought and is in the General Pool, you continue to write down; from 2008/9 the rate of Writing Down Allowance has been 20%. However, once the balance on the General Pool drops below £1,000 you can now write down the lot.

[Bridey]

Thank you so much for answering but I'm so sorry, I've no idea what that last paragraph means! :blush:

I guess what I'm asking is, as a childminder who only does book keeping and subkits a single line final figures to the tax office can I put the whole cost of a piece of equipment costing , for example, £400 down or does Annual Investment Allowance only apply if I did formal accounts?

[MrAnchovy]

Sorry about that, I assumed from what you said about Capital [Depreciation] Allowances you already had some items that you had been taking capital allowances on, in which case what I said would have made sense. Ignore it.

No, you can't put £400 for a piece of equipment down as part of your expenses, it goes in the Annual Investment Allowance box instead. The (automatic) tax calculation will come out exactly the same.

[Bridey]

Thank you very much :)