In the 2012-13 Financial Year, the Capital Allowance rate changed from 20% to 18%. DIY Accounting 2012-13 packages included the rate change but Company packages starting in 2011-12 and ending in 2012-13 will require an update to apply the "hybrid rate" of allowance. Most small businesses don't consume more than the Annual Investment Allowance that allows the whole cost of an asset to be counted against tax in the first year so, for DIY Accounting users, Capital Allowances are usually only applied to non-commercial vehicles.
More information on the hybrid rate can be found here: http://www.businesslink.gov.uk/bdotg...type=RESOURCES
All our latest packages have this change and current users have several options for applying the rate change.
- Do nothing - Applicable if no Capital Allowances are claimed
- Manually override the Capital Allowances claimed (column R of fixed assets)
- Download a fresh package - Your download link should still work
- Email us your package asking for the update to be applied
- Apply the update using the table below into Fixed Assets > Schedule > Cell R4
Hybrid rates for Capital Allowances for Year Ends from April 2012 through February 2013 are:
Year End Hybrid rate
The entry in fixed assets is the key rate change, you may also want to update the values displayed the Corporation Tax sheet in Financial Accounts:
Financial Accounts > Corporation Tax > cells G16, and G17
Financial Accounts > Corporation Tax > cells F93
Cells format to 0 decimal places so you'll just see 18, 19, or 20. The main thing is that the new value is used in the calculations.