year end accounts query

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diesel replied

22 June 2010, 07:49
Originally posted by *Clare* View Post

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.
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SackmanandCo replied

21 June 2010, 12:05
for tax purposes you will get 100% allowance- depreciation is a technical adjustment!
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Clare@InTouch replied

21 June 2010, 09:19
Originally posted by Stag Cozier View Post

£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.
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Stag Cozier replied

21 June 2010, 08:43
£550? Write it straight off as a expense in the year. Less hassle and faffing.
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diesel replied

21 June 2010, 08:20
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 As laptops get "out of date" quickly in tehcnical terms.
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Maslins replied

21 June 2010, 08:10
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.
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zedAccounts replied

21 June 2010, 07:21
>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.
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moorfield replied

21 June 2010, 07:14
Originally posted by moorfield View Post

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.
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moorfield replied

21 June 2010, 07:13
Originally posted by diesel View Post

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.
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diesel started a topic year end accounts query

21 June 2010, 07:06
year end accounts query

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?
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