15% RB Depreciation

[Sockpuppet]

Ok,

So did my final set of year end accounts today. Ok, got them from the accountant.

As I gave them a fully formatted set of accounts they changed very little on (put the postage as an overhead instead of a direct cost) I am going to temp fate and do my own accounts next year.

Now they have chosen a 15% reducing balance on my capital assets. Laptop and GPS, but they chose 50% capital allowance (first year) so essentially the tax is lower and the balance sheet is higher.

Now that seems low to me. The laptop is not going to be used for 7-8 years. 3 or 4 would be a better estimate.

Is it possible for me to change the way I depreciate stuff next year (25% reducing balance) would be better without hector getting the hump?

[xoggoth]

For some reason the depreciation rate used by accountants is always ridiculously low. You could change it but would have to add a note to the accounts stating so I think.

Can't see any point really as has no effect on your tax. To arrive at the profit for CT one adds back the depreciation and subtracts the capital allowances.

[Sockpuppet]

For some reason the depreciation rate used by accountants is always ridiculously low. You could change it but would have to add a note to the accounts stating so I think.

Can't see any point really as has no effect on your tax. To arrive at the profit for CT one adds back the depreciation and subtracts the capital allowances.

Yeah I was just more worried about the Balance Sheet being stupidly overvalued.

Not a major problem but if this happens then in a few years at 15% if I have replaced stuff I could be "sitting" on a few thousand of stuff that doesn't exist.

[xoggoth]

Never found accountants ever asked about what you had got rid of, but if the stuff you have replaced is scrapped the value should be removed from books as a disposal.

[Sockpuppet]

Never found accountants ever asked about what you had got rid of, but if the stuff you have replaced is scarpped the value should be removed from books as a disposal.

Cool. Cheers for the replies.