i am needing to replace my van and want to sell the old one
it is recorded as an asset for tax purposes how do i record this sale in my quickfile records
How it is recorded in your QuickFile records and how you treat it for tax purposes aren’t necessarily the same, so take advice from your accountant.
The sale price would be recorded as a normal sales invoice against the “sale of assets” code. If you’ve got it recorded as a fixed asset and you’ve been recording depreciation in the normal way then you can use a journal to credit the original purchase price to the original asset code and debit the accumulated depreciation off the matching balance sheet depreciation code to take it off your balance sheet. The balancing entry in the journal also goes to “sale of assets”, making the net effect on that code equal to the gain or loss on disposal (depending whether you sold it for more or less than the net book value at the time).
But as I mention above the NBV doesn’t necessarily match the amount of capital allowances you’ve claimed for tax purposes so the effect on your tax return will be a question for your accountant.
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Hi mwilkesbuilding,
That is actually a question you should ask your accountant because it depends on a few things, for example are you VAT registered or not; did you sell it with a loss or profit in comparison to the Net Value for this year.
I found something in this forum from a few years ago, may it is helpful:
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