When you operate a small business, the money you make throughout the year is subject to income tax. However, you can reduce your taxable income by deducting legitimate business expenses. In your case, if you need a camera for taking professional photos of your jewelry to enhance sales, this expense is likely considered a legitimate business deduction. When you purchase the camera for £300, which is used solely for business purposes, you can deduct this amount from your business income.
The deduction reduces your taxable profit, which can decrease the amount of tax you owe. However, it’s important to understand that a £300 deduction doesn’t equate to a £300 reduction in your tax bill; rather, it reduces the profits on which you are taxed. So, it may reduce your tax liability, but not necessarily to zero, unless your taxable income is reduced sufficiently. It’s advisable to keep detailed records of the purchase and consult with a tax professional or accountant to ensure compliance with tax regulations and to calculate the exact impact on your tax liability.