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    Default How to claim cost of laptop on HMRC online corporation tax return/accounts submission

    Hi, I have looked for an existing answer to a question like this, but apologies if this has been addresed before.

    I am (perhaps foolishly) doing my own accounts again for the 2nd year running. I managed fine last time, but this year the business laptop I purchased from my ltd company's funds is messing things up and I can't get the balance sheet to tally with the profit & loss account.

    I have added the full 1649 cost of the laptop to the "cost of sales" section in P&L to claim it as a tax-relieved business expense, and added it as a fixed asset on the balance sheet. Unfortunately the latter change causes the total net assets to exceed the P&L running total by the value of the laptop. Any idea what I'm doing wrong?

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    キツネの帽子をかぶる

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    It's not a "cost of sale" but a purchase.
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    It should be in an overheads type account like office costs, or consumables.

    If it had been an expensive laptop, I would have put it in an asset account and set up three year depreciation but that's overkill for the amount you spent.

    My journal would have been:
    CR bank
    DR office costs

    Simples.
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    Get an accountant.
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    Quote Originally Posted by northernladuk View Post
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    IMO you should be treating this as an asset. It's not a cost of sale. You would need to claim capital allowances.

    A goodf accountant will show you how to do this.

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    Quote Originally Posted by TheCyclingProgrammer View Post
    IMO you should be treating this as an asset. It's not a cost of sale. You would need to claim capital allowances.
    I agree, add in as an asset and then claim AIA.

    Don't forget to also put depreciation in the accounts for the asset.

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    I get where you're coming from on the asset front but I took my accountant's advise that low value purchases just aren't worth it. The depreciation isn't CT allowable. I stick things on the asset register when they hit about 2k but that's a limit which works for me, and keeps the depreciation admin down, whereas a lower limit might be better for others.
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    Quote Originally Posted by ladymuck View Post
    I get where you're coming from on the asset front but I took my accountant's advise that low value purchases just aren't worth it. The depreciation isn't CT allowable. I stick things on the asset register when they hit about 2k but that's a limit which works for me, and keeps the depreciation admin down, whereas a lower limit might be better for others.
    And that's what I thought. Not the advise bit of course, but oddly enough both accountants moved sub 500 purchases to assets in the two cases I can remember.
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