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As a sole trader , if you have excess capital allowances coming forward from prior year, can you just use some of these capital allowances to bring the taxable income to an amount that the tax due will be covered by tax credits or do you have to use the capital allowances to bring the taxable income to 0 ? Eg Have 50k of excess capital allowance c/f. Taxable Income before capital allowance is 30k. So can I just use 16k of capital allowances to bring taxable income to be 14k which is covered by tax credits (being 14k * 20% less 1,650 +1,150 personal tax credit & earned tax credit) or do I have to use the full 30k to bring taxable income to 0

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Asked on 11 November 2019 8:12 pm
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