tax question (boring, sorry!)

[cookiee69]

i am thinking about buying a new computer.
as i am a journalist i will be able to set this off against tax.
however, i don't really know wht this means.
if my computer is �2000, does that mean i don't have to pay the tax man �2000, or part of it?
Cheers
angela

[Ethel]

Assuming you pay tax at 20% (I know you don't, but it is easy for the example) - it simply means you don't pay tax on the �2000, saving you �400.

[kags]

You cannot claim the full amount in one tax year, as it would be classed as capital expenditure. You can claim 50% of it this tax year, followed by 20% of the reducing balance in future years.
There is some useful information here
http://tinyurl.com/2nj7uk