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tax question (boring, sorry!)

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cookiee69 | 15:13 Tue 20th Nov 2007 | Business
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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

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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.
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

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