UK How much capital allowances to claim?

[neilsolaris]

Hi,

I'm based in the UK, am self employed, and I have some capital allowances to use for the last tax year, and I'm wondering how much to claim. Is it considered better to bring my taxable profit down to the personal allowance level (£11,500) or better to bring it down to the class four national insurance level (£8164)? The latter would save a further £300.24, but would waist some of my personal allowance.

In case you need to know, my capital allowances are eligible for the annual investment allowance, but are not enough to turn my taxable profit into a loss.

Many thanks for your advice.

 

[Bertie2k]

From what I have learnt heard and think myself do not ruin your NI, could have effects on state pension in the future? Maybe someone could confirm, plus I have never seen you actually being able to as capital allowances affect tax, national insurance is a contribution (form of tax but you get something out of it in the end). I think you would only waste your allowances as you cant use your allowances to create a loss. Correct me if Im wrong as its been a while since Ive done this (I am in industry) but Im pretty sure Im right.