Hi, I have decorated and equipped my new studio with new flooring, filing cabinets, lighting, easel etc. Nothing over £300. What Nom code would I enter these under
Many thanks for any help.
Hi @Stephie,
This would depend on whether you count the items as assets to the business. You could use Fixtures and fittings or office equipment or even maintenance.
You can create your own nominal account : Adding a new nominal account
But if you are unsure, it may be best to speak with your accountant to see whether you should code them under assets or not as they should know the details of your business.
Is the studio a room in your home or is it a separate building that you have bought or rent? Are you a sole trader, partnership or a limited company?
They are capital assets so should be coded to fixtures and fittings, plant & equipment or office equipment, whichever seems most appropriate, and you would then depreciate them every year and claim capital allowances for those items of eligible expenditure on your tax return.
If you’re a sole trader preparing your accounts on a cash basis, however, you could put them through as “small equipment” and/or repairs and maintenance.
Bear in mind though, that capital allowance may not be claimed on items like flooring which are incorporated in a building. See the link for more information.
Also see the following link, as some integral features - such as electrical and lighting systems - can qualify for capital allowances.
It would be best, though, to check with your accountant as capital allowances especially for buildings are quite complicated.
1 Like
Thank you very much for your help
Hi, thank you for your help.
I am a Sole Trader, Artist and teacher of art.
My studio is in my home, where I converted a spare bedroom.
I have also bought an easel. cost $400, would this be an asset.
I have also had to convert teaching to online so have bought a new video camera etc, are these assets?
TIA for any help it’s much appreciated.
The easel and video camera would be considered assets - but you can only claim for the extent that they are used for business purposes. If they are used “wholly and exclusively” for your business, then you can claim 100%. If you use them, say, 20% of the time for personal use, then you would only be able to claim 80% against your sole trader profits.
This topic was automatically closed after 7 days. New replies are no longer allowed.