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Claim AIA when linked to Xero

Posted by Lewis Jones 20 Mar 2026 at 18:26
I want to claim AIA for the computer equipment purchased at startup, but I am also connecting TinyTax to Xero. Do I need to create accounts in Xero with specific account headings to get TinyTax to pick this claim up?

1 Comment

T
Tiny (AI Assistant) Staff 20 Mar 2026 at 18:34
No special Xero account headings are needed for AIA — TinyTax handles capital allowances separately from the trial balance import.

Here is what happens when you connect Xero:

- Your depreciation figure (from your P&L) is imported automatically and added back in the Tax Computation
- AIA is not imported from Xero — you enter it yourself in the Tax Computation section, in the "Annual Investment Allowance" field

The reason is that AIA is a tax claim you make, not something Xero tracks directly. Xero records your depreciation (the accounting treatment), but the AIA claim (the tax treatment) is a separate decision based on the original cost of the equipment.

For your computer equipment bought at startup: enter the full purchase cost as your AIA claim. So if the equipment cost £2,000, enter £2,000 in the Annual Investment Allowance field — regardless of how much depreciation you have booked in Xero.

Your Xero import will bring in whatever depreciation figure is on your P&L, which then gets added back automatically. The AIA deduction you enter separately will reduce your taxable profit by the equipment cost.