Recent content by CriticalThinker

  1. CriticalThinker

    Business Expenses and Self Assessment

    Pleasure :) And still another day to go before the filing deadline!
  2. CriticalThinker

    Business Expenses and Self Assessment

    Assume you mean 45p not £45....otherwise there is a LARGE benefit in kind ;) Yes. The expenses are a merely a reimbursement for expenses you have incurred in performing your duties. If you declared the mileage payments as 'income' then you would also claim the mileage costs as 'expenses'...
  3. CriticalThinker

    Business Expenses and Self Assessment

    Yes this is your employment income Depends on the rate at which you paid the mileage. If you paid yourself HMRC's approved rate of 45p or 25p (depending on mileage done in a year) then no. If you were paid less or more than this then yes because you can either claim the additional tax relief...
  4. CriticalThinker

    How to record savings

    I am assuming that this money is being put aside until Christmas and then being paid back to the employees from which it has been collected therefore a liability needs to be recognised up until the point it is paid. Looking purely at the accounting for this, and not the scheme mechanics itself...
  5. CriticalThinker

    Depreciation vs capital allowances

    Ok great, almost there! Right what you'll need to do is remove the asset from the fixed asset register (it's nice to see someone actually using this function in Xero!). Doing this will not affect the journal entries that you made as these are postings to the general ledger. There are two ways...
  6. CriticalThinker

    Depreciation vs capital allowances

    Correct. You will need to DR expenses P&L CR cost of asset BS (if you've put through depreciation you'll also need to reverse and DR dep'n BS CR dep'n P&L) so that your balance role forward correctly. Correct, this flat rate is based on hours worked from home (I would imagine you've seen the...
  7. CriticalThinker

    Depreciation vs capital allowances

    Who would be an accountant hey?! I'll try to make this as pain free as possible so not to cause a migraine! The laptop can be claimed as a usual business expense; the tax effect being the same as if you used the AIA which you can't use under the cash basis (it is a capital allowance). The car...
  8. CriticalThinker

    Depreciation vs capital allowances

    Got it :)
  9. CriticalThinker

    Depreciation vs capital allowances

    Yes because as a continuing business for the last 15 years, as in the example above, the basis period (the period in which you are taxed) should be the same as your accounting period (Jan - Dec each year) i.e. you will be taxed in 2017-18 on the profits earned in the year ended 31 Dec 2017 which...
  10. CriticalThinker

    Depreciation vs capital allowances

    Is this financial year (1 Jan 17 to 31 Dec 17) your first trading year? The simple answer is yes, the basis period is different to your accounting period however I am conscious that you get the basis period correct this year and next and this may result in overlap profits. For your first tax...
  11. CriticalThinker

    Depreciation vs capital allowances

    Correct - one for accounts purposes, the other for tax. Just be aware that you need to consider the emissions of the car to determine the capital allowance pool and rates to be claimed
  12. CriticalThinker

    Depreciation vs capital allowances

    I understood but of course using an accountant would be highly beneficial to anyone to make use of all the knowledge and allowances, AIA for instance ;) ;) (btw it's purely just coincidental that two accountants are the only posters to this post :rolleyes:)
  13. CriticalThinker

    Depreciation vs capital allowances

    Only if the OP is planning on calculating their own taxable profits and tax; which of course may be the case. If you are just wanting to maintain your company accounting records then you only need to worry yourself with depreciation as this the method to account for the write down of value over...
  14. CriticalThinker

    Micro Entity First Accounts - Please Help

    It looks like your 'other costs' should be £4,851 not £4,581. I make this assumption based on the following: Money put into bank £10,000 Expenditure paid for (£3,195) (£4,851) Cash in bank at YE £2,602...
  15. CriticalThinker

    Bookkeepig

    Couple of really simple things for filing your receipts: 1) Give each receipt / invoice a unique filing reference (e.g. PI001 etc) 2) File in an order that will easily allow you to locate the receipt/invoice if required (typically people find monthly the easiest) Keeping in mind the above two...
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