Can I claim tax back for an item ordered before end of tax year but despatched and charged for after?

Question

I ordered some equipment for my business just before the end of the year (March 27th). It has since been delayed and delayed and delayed. I've still not yet received it, and the company I ordered it from has not yet charged my account for it.

Can I still claim for the item in this years tax return?

Since the charge hasn't actually been made yet I'm unsure, I'm assuming when the item is finally dispatched and I am charged for it the receipt will show the original date of purchase, but am not sure.

Also, if I finally have enough of the delays by this supplier and decide to reorder the item elsewhere I'm assuming that the purchase will then need to be claimed in next years return?

It would be preferable to make the claim in this years return as I'm expecting a lower profit in the coming year as I will be working less.

Any advice you can offer would be much appreciated.

Answer 1

Capital expenditure is deemed to be incurred when the obligation to pay for it becomes unconditional. Generally this won't be until the goods are delivered. The Annual Investment allowance is just another form of capital allowance and the same rules apply

Answer 2

If it is capital equipment (for which you would claim capital allowances) - no, because it has to be in use at the end of the year. If it is lesser equipment that you can claim for on a "renewals" basis - yes, because your accounting should be on the "accrual" basis (ie when the debt is incurred, which is when you placed a firm order), not on the basis of cash.

Answer 3

No you can't because there is no payment to offset it against. The payment hasn't been made yet, so you can't allow it against your tax.