Asset disposal pre MVL

[Rossco]

Here's the story, i've been contracting for around 6 years, have a bit of a wedge left in my limited so need to go down the MVL route (>£25k)

I've taken all my divs for the year and now need to dispose of the company assets, basically a laptop (24months old), a surface (i dont get on with that ****er at all), monitor, NAS and some other bits like a phone, network router and a camera, total cost was just shy of £5k for this stuff over the course of the last 2.5 years

i planned to use the std depreciation of 33% so anything older i've written off (there wasnt much, a previous mobile phone and a tablet as i worked on mobile stuff mostly)

is it reasonable to depreciate anything bought upto 6 months or so ago at 33% too?

ie 0-1 year old - 33%
1-2 66%
2-3 write off

looking at the kit i think that seems about market rate for used items, the most recent things were the surface and an iphone (old one broke) - bought around the end of 2014 and Jan


Also - as a random aside the NAS is currently under a ticket with the manufacturer as it appears to have popped it's cork. I'm not going to pay for that if it doesnt get fixed right? POS.. avoid Synology at all costs, their support is shat

[Maslins]

You should be taking them out at fair market value, regardless of how much depreciation has/hasn't been put through the books to date. As to what is fair market value, a search on eBay's completed listings can be handy, look for similar items to yours, similar age/condition, and see what they sold for.

Assuming you'll be keeping all the items, I'd suggest just pick a reasonable figure for the value of them all combined, discuss with your accountant, and they should be able to process that all for you.

[tractor]

...

You should be taking them out at fair market value, regardless of how much depreciation has/hasn't been put through the books to date. As to what is fair market value, a search on eBay's completed listings can be handy, look for similar items to yours, similar age/condition, and see what they sold for.

Assuming you'll be keeping all the items, I'd suggest just pick a reasonable figure for the value of them all combined, discuss with your accountant, and they should be able to process that all for you.

It is a good idea to print out and keep said listings so that if your estimates are questioned, you have unassailable proof of market value.