Record a fixed asset, iphone (both personal and business use) in quickbooks 2010

Chinadavid18 · #1 15th April 2012, 09:04

Hi,

I feel like I am just going round in circles trying to find the best method of recording this new purchase. I will use the iphone 60% for business and 40% for personal use.

How I can I record this asset in quickbooks (including depreciation!) based on it 60% business usage and how do I record the 60% reclaim of VAT.

I understand the figures but am not sure how to input them into quickbooks. Any help would be greatly appreciated.

Many Thanks
David

David Griffiths · #2 15th April 2012, 10:17

Sole trader or company?

If a company, is the contract in the name of the company or you as an individual.

I presume that we are talking about an outright purchase of a phone here, not the more usual situation where it's provided "free" under a contract?

Chinadavid18 · #3 15th April 2012, 10:24

David, thanks for the quick reply and offer of help.

The company (invoice made out to the company) purchased the phone outright in the UK but it does not have any contract in the UK. I am currently using it in Hong Kong and China on 'Pay as you go' sim cards. (60% for business). My company is a UK Ltd. I only want to claim for the phone itself(699GBP inc VAT).

Kind Regards
David

David Griffiths · #4 15th April 2012, 10:58

Just record the whole cost as a fixed asset.

There is no need to apportion between business and private. If it was relevant, any private use would be dealt with by a benefit in kind charge, but there is no benefit in kind on the private use of a mobile

Platform · #5 15th April 2012, 15:32

Fully agree with David, absolutely no need to proportion it out.

Stick the full amount on the BS and claim the relevant capital allowance.

Chinadavid18 · #6 17th April 2012, 00:53

Many Thanks.....

hackeron · #7 6th February 2013, 15:38

I remember, back in 2007 anyway, smart phones were not considered phones at all, but rather as computers. You had to declare them as such and then claim 25% of the item cost every year.

I haven't kept up to date on this. Is this still the case?

The company in question is a limited company turning over under £50,000 per year and not VAT registered. Does the item need to be depreciated every year, or can the full cost of the iPhone be claimed back in the same year?

Scalloway · #8 6th February 2013, 16:56

You can claim 100% of the cost of assets up to £25,000 through the Annual Investment Allowance (AIA). Writing Down Allowance is 18% if you don't use the AIA.

MrAnchovy · #9 6th February 2013, 17:05

Quote:

Originally Posted by hackeron

I remember, back in 2007 anyway, smart phones were not considered phones at all, but rather as computers. You had to declare them as such and then claim 25% of the item cost every year.

I haven't kept up to date on this. Is this still the case?

No, and it wasn't the case in 2007 either, but if you had said back in 2005 you would have been right - the definitions changed from April 2006 so that a smartphone is now a phone.

hackeron · #10 6th February 2013, 17:14

Quote:

Originally Posted by MrAnchovy

No, and it wasn't the case in 2007 either, but if you had said back in 2005 you would have been right - the definitions changed from April 2006 so that a smartphone is now a phone.

Really? - seems the announcement was in Feb 2012 - http://www.hmrc.gov.uk/briefs/income-tax/brief0212.htm - or is this just for the P11d?

Recent information in this accounts software for instance also gives an "iPhone" as an example of something that must be listed as a Capital Asset and depreciated: http://www.freeagent.com/support/kb/...ent-start-date