Many fixed assets can be included as an ‘Annual investment allowance’ - ie laptops, machinery, tools where 100% is deductible as long as you spend under £200 000 a year. It should be quite easy to add in this asset expense as there is no depreciation involved. Pretty please can you add a special category for this.
The issue is that there are also seperate depreciation values depending on what the assest is i.e. a computer/satnav comes under 33.33% dep per yr. You have land 0%, Plant & Machinery 10% and Motor vehicle dep 25%.
I have this functionality on a spreadsheet accounting package that i used to use, before trading up to QF. I think it’s a very easy tabulation sheet to make as it just throws in the depreciation value and is needed for the end of year. Looks like I’m still going to need it if this is not part of the package.
And I really wish they would add ‘Cost of Sales’ (not labour) my head still cannot get around it as something else where i want to charge for postage.
There are more complex scenarios for depreciation other than just depreciating an asset over its life and booking it to the p and l each year. Sometimes there are situations where you may not be able to claim CT relief on depreciation because you’ve used AIA which is a tax deduction and not part of your accounts. In that situation depreciation would not create CT relief and would be added back but you’d probably still show the asset depreciating on the balance sheet. Qf would not be able to predict every situation and so its not as simple as some would like to believe.
Hi @Glenn, I have revived this topic due to changes in what HMRC are requiring when submitting a Self Assessment tax return with the additional complexity of differing depreciation dependant on the CO2 emissions for vehicles.
Business turnover increased above the VAT threshold in the last financial year which involves filing FORM-SA103F Self Assessment: Self-employment (full). NOTES-SA103F
Besides the more detailed reporting of overheads as defined using the HMRC categories there is a more complex calculation required for capital allowances i.e. depreciation dependant upon CO2 emissions.
A way of recording fixed assets that includes the appropriate writing down allowance (WDA) seems an important step to support small businesses.
Previously WDA of 18% was a standard that easily calculated an agreeable assets schedule journal.
How to manage assets with differing WDA 18%, 6% or 100% ?? I don’t have the answers!
An asset register to record the correct WDA seems a requirement under the more complicated HMRC expectations.