year end accounts query

[diesel]

Agreed, there's no need to capitalise such a small item. It will get written off 100% for tax purposes anyway.

thanks for advice, i will let my accountant (1person home worker co) know and see what they say back.

[SackmanandCo]

for tax purposes you will get 100% allowance- depreciation is a technical adjustment!

[Clare@InTouch]

£550? Write it straight off as a expense in the year. Less hassle and faffing.

Agreed, there's no need to capitalise such a small item. It will get written off 100% for tax purposes anyway.

[Stag Cozier]

£550? Write it straight off as a expense in the year. Less hassle and faffing.

[diesel]

thanks for your replies.
Is 4 years the normal time frame for such matters? Or should it be 2 or 3? As laptops get "out of date" quickly in tehcnical terms.

[Maslins]

For tax purposes the whole amount will be written off in the year of purchase, ie £550 will be knocked off your profit for tax purposes.

The 25% straight line depreciation suggests your accountant thinks the asset will last 4 years and be useful for nothing at the end of that time...which for computer type equipment sounds reasonable. The cost is therefore spread across 4 years in the accounts.

[zedAccounts]

>Accountant has applied a 25% straight line depreciation

I tend to use reducing balance for such items, on the grounds that they will have some residual value even after several years.

ZED.

[moorfield]

Sounds normal to me. I think you're thinking of VAT re the £2000 figure.

PS. Make sure you understand EVERY number on your year end accounts before you sign them off.

[moorfield]

Accountant has just prepared my year end accountants.

My query related to a laptop and sat nav i bought earlier in year for business use which costs £550.

Accountant has applied a 25% straight line depreciation ion my accounts as Expenditure.

Is this correct? as i though office electronic equipment under £2,000 was exempt from this?

Sounds normal to me. I think you're thinking of VAT re the £2000 figure.

[diesel]

Accountant has just prepared my year end accountants.

My query related to a laptop and sat nav i bought earlier in year for business use which costs £550.

Accountant has applied a 25% straight line depreciation ion my accounts as Expenditure.

Is this correct? as i though office electronic equipment under £2,000 was exempt from this?