Broken laptop

[badger7579]

So the laptop is a company asset
I've had it 3 years
It’s now knackered so a note is made in the accounts to effect of it being disposed of
I can purchase a new one to replace it???

[Sands of Time]

Sorry, I'm confused...

Do I have to inform people on this forum if I want to dispose and get a new laptop?

Is the OP bragging that he can afford to buy a laptop?


I ain't 'appy!


Bing!

[badger7579]

I'm just enquiring as to the validity of the process I have described. That’s all.

[Clare@InTouch]

Your accountant can have any view they like but it's still a fixed asset if it's expected use is over 1 year

I should know I spent nine long years as an accountant bored for every minute of my working day, and I've yet seen a laptop cheap enough not to count it as an asset

It depends how risk averse you are and how much hassle you want in the case of an IR inspection....

I can't see how HMRC would care. AIA allows the asset to be written off in full in the first year, and including it as an expense has the same result. There's no tax saved or lost either way.

Materiality also needs to be considered. If you're going to capitalise anything you use for over a year then on your logic we should also be adding a calculator to the balance sheet. Where do you draw the line?

In my view a laptop costing £500 will be worth next to nothing after a year due to the speed of technological advances, therefore it would be misleading to capitalise it.

Badger - what you've suggested is fine.

[badger7579]

Thanks Clare.

[Old Greg]

Thanks Clare.

And the lesson is... post in Accountancy / Legal.

[PAH]

I'm sure it's fine to write it off as knackered. It's the truth after all.

There must be quite a lot of leniency in this as my accountant once put on my accounts that I'd 'skipped' a load of gear I'd bought for a plan B that turned out to be a waste of time and money. My ltd never got a penny from this 'skipping', and my accountant is pretty straight so not likely to recommend this if it's not going to get past an inspection.

Come to think of it I never put through an invoice for the 'skip'. Damn, missed a trick there.