Julie Pickford answers your personal finance questions.

Question: For some reason, I have been sent a self-assessment tax return for the past three years and I don't seem to have any further tax to pay. Last year, I received a small refund. Is there any way that I can avoid having to complete these forms each year? It seems an awful nuisance.

TM of Kidlington

Julie writes:Write to the tax office that sends you the returns and explain the circumstances. In view of the administrative burden on the Inland Revenue for each return that is issued, they will probably be only too glad to take you off the system.

However, I would write quickly because they will soon issue the 2001 returns. Once received, you must complete it.

Question: I run a small business and among my fixed assets are a couple of computers. I have to replace them soon and I understand that I can depreciate them for tax purposes at a greater rate than other assets. Can you explain how?

Tony of Watlington

Julie writes:Tax relief for the purchase of capital equipment is given by capital allowances these replace depreciation, which is usually shown in a company's accounts.

Fixed assets with a life expectancy of less than four years may be treated as 'short life assets' rather than being added to the pool of fixed assets.

Though tax relief is limited to the annual allowance of 25 per cent each year, when the asset is sold (or more likely scrapped in some cases) within the four-year period, a balancing allowance may arise that effectively gives full relief for the cost of the asset within three years, rather than over a longer period that would otherwise be the case. Computer equipment used to come into this category. However, for acquisitions after April 6, 2000, a 100 per cent first-year allowance is given, thus providing full relief for the cost in the year of acquisition.

The allowances also extend to Internet-ready mobile telephones.

This area can be a technical minefield and you should seek professional help.

Julie Pickford is a partner at chartered accountant Mazars Neville Russell. Write to her for free advice at Mail Money, Mazars Neville Russell, St Thomas House, 6 Becket Street, Oxford OX1 1PP. Advice is for guidance only.

Registered to carry on audit work and authorised to carry on investment business by the Institute of Chartered Accountants in England and Wales.