I am curious how the UK’s full expensing works in terms of accounting for it.
Full expensing explanation found here: Spring Budget 2023 – Full expensing - GOV.UK
My question is, how does this show in the accounts?
Do I just do full depreciation and expense that? Doing this makes the asset show as having no value anymore, so this doesn’t make sense to me.
Any help is appreciated, thanks.
Hello @Etien
You may wish to check this with your accountant as it is not something the support team could advise on unfortunately.
I will leave the post open as there are some accountants who use the forum who may add a comment.
“Full Expensing” is referring to claiming Capital Allowances for Plant and Machinery at 100% first years allowance etc.
This is claimed on your tax return so does not go on your accounts, only the assets purchased and their depreciation are entered on your accounts.
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