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Tax Relief On Running Costs

Former userFormer user14y ago
I did a question where i had to calculate tax relief,
Tax relief was calculated on running cost separately and capital
allowance on investment separately.

Question is: if tax was paid in arrears, would we have to include the tax relief of running costs one year after just like in capital allowance on investment ??
John MoffatJohn MoffatTutor14y ago#1
Yes - if tax is paid one year in arrears then the tax saving on running costs will be one year after the cash flow (just as the tax paid on income would be one year later).
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