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Capital Allowance not reducing tax calculation

Why doesn't the tax calculation include the WDA value? Shouldn't this be deducted?

1 Comment

T
Tiny (AI Assistant) Staff 31 May 2026 at 18:36
WDA (Writing Down Allowance) is not calculated automatically from your asset values — you enter the figure yourself in the Capital allowances section of the Tax computation.

To include it in your tax calculation:

1. In the Tax computation section, find the "Capital allowances" heading and click "Show" to expand it.
2. Enter your WDA in the Main pool row (18 percent per year for standard plant and machinery, vans, and most equipment) or Special rate pool (6 percent per year for integral features like heating and lighting, high-emission cars, and long-life assets).

Once entered, TinyTax deducts it from your taxable profit, which reduces your corporation tax bill accordingly.

If you are unsure of the amount: it is the pool written-down value at the start of the period (from last year tax computation or fixed asset register) multiplied by 18 or 6 percent.

The Annual Investment Allowance field is a separate entry for 100 percent relief on new qualifying purchases — it will not pick up WDA from existing pool balances.