---
title: "Capital Allowances for larger or long-term items"
description: "Capital Allowances are slightly different to everyday expenses. HMRC understands that a business will have to purchase items to use on a daily basis as 'general expenses' - this could be paper for the printer, stock to sell (e.g. books) or…"
url: "https://malgrabooks.co.uk/docs/capital-allowances-for-larger-or-long-term-items/"
updated: "2026-02-18"
category: Expenses
---

# Capital Allowances for larger or long-term items

Capital Allowances are slightly different to everyday expenses. HMRC understands that a business will have to purchase items to use on a daily basis as 'general expenses' - this could be paper for the printer, stock to sell (e.g. books) or stamps for postage.

Capital Allowances are seen as something 'bigger' which would usually last longer than a year. This could be a new computer or office furniture. Capital Allowances can be declared separately to your main income / expenses figures which are provided to HMRC.

However, if you're a sole trader and have income of £150,000 or less, you can use the cash basis system, which means these are classed as standard expenses.

If you're VAT registered or have a higher income, speak with an accountant to understand your options.

Further reading for Capital Allowances:

- [HMRC Website guidance](https://www.gov.uk/capital-allowances)
- [HMRC: Annual Investment Allowance (Capital Expenses)](https://www.gov.uk/capital-allowances/annual-investment-allowance)
- [Which? Self-Employment Guide - Capital Allowances](https://www.which.co.uk/money/tax/income-tax/guides/income-tax-for-the-self-employed/self-employed-capital-allowances)