Writing Down Allowances (WDA) Basics for Expensive Equipment Purchases: A Guide for Creatives in the UK

If you’re a singer, artist, influencer, or performer who has invested in expensive equipment, you may be able to reduce your tax bill by claiming Writing Down Allowances (WDA).

For self-employed creatives, large purchases like instruments, cameras, studio equipment, or computers can be tax-deductible—but sometimes, rather than claiming the full cost upfront, spreading the deduction over multiple years makes more sense.

That’s where Writing Down Allowances (WDA) come in.

This guide explains what WDAs are, when to use them instead of the Annual Investment Allowance (AIA), and how to claim them on your tax return.

1. What Are Writing Down Allowances (WDA)?

Writing Down Allowances (WDA) allow you to spread the tax deduction for expensive equipment purchases over several years, instead of claiming the full cost in one go.

This is useful if you:

• Have already used up your Annual Investment Allowance (AIA).

• Want to spread tax relief over multiple years to balance out your income.

• Expect lower earnings this year, so you don’t need a big tax deduction right now.

Example:

• You buy a £5,000 PA system for live performances.

• Instead of deducting £5,000 in one year, WDA lets you spread the deduction across several years, reducing your taxable income gradually.

  
  

2. When Should You Use WDA Instead of AIA?

Most self-employed creatives will use Annual Investment Allowance (AIA) to deduct the full cost of equipment in the year they buy it.

But if you’ve already used up your £1 million AIA limit, or if you want to spread deductions, then Writing Down Allowances (WDA) is your best option.

Use AIA if:

• You want to deduct the full cost upfront.

• You haven’t hit the £1 million AIA limit.

  
  

Use WDA if:

• You want to spread deductions over time.

• You’ve already used up your AIA allowance.

• You expect to earn more in future years, so spreading deductions is beneficial.

  
  

For most self-employed artists, musicians, and influencers, AIA will be the best choice—but WDA is useful in specific cases.

3. How Much Can You Claim with WDA?

If you choose to use Writing Down Allowances, you can deduct a percentage of the equipment’s cost each year.

Here’s how it works:

• Main Rate Pool (18%) – Most business equipment, like instruments, cameras, and computers, fall under this category.

• Special Rate Pool (6%) – Includes things like integral building features and long-life assets.

  
  

For most self-employed creatives, equipment will fall into the Main Rate Pool, meaning you can deduct 18% of the remaining balance each year.

4. Example of Writing Down Allowances in Action

Let’s say you buy a £5,000 music production setup and decide to use WDA instead of AIA.

Year 1:

• Deduct 18% of £5,000 = £900.

• Remaining balance: £4,100.

Year 2:

• Deduct 18% of £4,100 = £738.

• Remaining balance: £3,362.

  
  

This continues until the full amount has been deducted over multiple years.

Why does this help?

• If your income fluctuates, spreading deductions can balance out your tax payments.

• If you expect to earn more in future years, keeping some tax relief for later can be useful.

  
  

5. How to Claim Writing Down Allowances

If you’re self-employed and filing a Self-Assessment tax return, you can claim WDA under “Capital Allowances”.

1. Keep receipts and records of the equipment purchase.

2. Work out how much you can claim using the 18% or 6% rule.

3. Enter the amount in the Capital Allowances section of your Self-Assessment tax return.

   
   

If you use accounting software like FreeAgent, QuickBooks, or Xero, it can automatically calculate WDA for you.

6. Common Mistakes to Avoid

• Forgetting to keep receipts – HMRC may ask for proof of your purchase.

• Claiming WDA on personal purchases – Only business-use items qualify.

• Not checking whether AIA is a better option – AIA usually gives a faster tax benefit.

• Missing tax deadlines – You must claim WDA in the correct tax year.

  
  

7. Final Thoughts: Should You Use WDA?

If you’re a singer, artist, influencer, or performer and you’ve bought expensive equipment, claiming Writing Down Allowances (WDA) can help spread tax relief over multiple years.

• Use AIA if you want full tax relief upfront.

• Use WDA if you prefer gradual deductions or have already used your AIA limit.

• Keep detailed records and file your claim properly in your tax return.

  
  

Understanding capital allowances like WDA and AIA ensures that you pay less tax and keep more of your income, helping you invest in your creative career with confidence.

If you're ever in need of help with setting up a limited company, sorting out your bookkeeping, accounting and tax submissions or would like some personal financial coaching, drop us a line by clicking on the 'Contact Us' button at the top of the page and we'll be happy to help.

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