Entering fixed assets on Sage

[Marco66]

Hi,

Having set up in business in 2011 ( as sole trader) I've been using my personal electronic test equipment for the business.

I now need to add these to my fixed assets as I understand that I can claim 40% tax relief on these capital equipment in the first year ? As yet I havn't run year end for last year.

Problem is I don't have receipts for any of it. I've compiled a list detailing the current value if I were to replace now. Am I right in saying that I enter this value in the cost price section of Sage when adding in ?

As I'm investing this equipment in the business how should I record it ? Capital Investment - and should I pay myself anything ?

In terms of depreciation - do I just run this before actioning year end ( as I understand I should have done this in a monthly basis) and it will provide a new value in the accounts ? Also is there a specific % I have to use ?

The equipment is valued at around £6k.

Thanks.

 

[Scalloway]

Having set up in business in 2011 ( as sole trader) I've been using my personal electronic test equipment for the business.

I now need to add these to my fixed assets as I understand that I can claim 40% tax relief on these capital equipment in the first year ? As yet I havn't run year end for last year.

If this is for 2012/13 you can only get 18% writing down allowance. You can't claim Annual Investment Allowance as the assets were not bought for the business.

Problem is I don't have receipts for any of it. I've compiled a list detailing the current value if I were to replace now. Am I right in saying that I enter this value in the cost price section of Sage when adding in ?

That may be difficult. You should provide as much evidence as you can, eg a list of asseets, photos at your workplace. The value will be the market value at the date they were taken into the business, not the replacement value.

As I'm investing this equipment in the business how should I record it ? Capital Investment - and should I pay myself anything ?

Dr fixed asset
Cr capital introduced

Paying yourself is not necessary because as a sole trader you and the business are the same.

 

[Marco66]

Hi again !

I'm adding the assets for 2011-2012 accounts as not run end of year yet. My understanding is that when setting up you can claim 40% on new equipment or have I got this wrong then ! I thought it was an incentive from the HMRC for mew business'.

In reference to the equipment I've taken various screenshots off the net showing the value of the item which I hope would help with any querries from HMRC if it comes to it.

 

[Scalloway]

The 40% First Year Allowance ceased to exist a few years ago. It was replaced by Annual Investment Allowance (AIA) which allowed you to claim 100% of capital expenditure in the year it was incurred. AIA cannot be claimed on assets that are already owned by you, you are limited to a 20% Writing Down Allowance (WDA) in 2011/12, which reduces to 18% in 2012/13.

 

[Marco66]

So hyperthetically - If I didn't own this equipment but had purchased the lot from a friend as a job lot with a reciept in 2011 - I could then claim 100% against tax on my 2011-12 return ?

 

[Scalloway]

Yes. Any asset purchased by the business is eligible for AIA in the year of purchase.