Office equipment

[gengar3]

Below are the sections for business allowances (on HMRC's website). Does an office desk and computer go in the section for 'Cost of goods used', 'Other office costs', or 'Other allowable business expenses'? ...or, on the following page there is a section for 'Other capital allowances'.

Costs of goods bought for re-sale or goods used:
Car, van and travel expenses after private use proportion:
Wages, salaries, and other staff costs:
Rent, rates, power, and insurance costs:
Repairs and maintenance of property and equipment:
Accountancy, legal and other professional fees:
Interest and bank and credit card etc. financial charges:
Telephone, fax, stationery and other office costs:
Other allowable business expenses (client entertaining costs are not an allowable expense):

Many thanks

 

[STDFR33]

Look like capital purchases to me.

 

[Cambridgeshire Accountant]

Hi gengar3,

The costs you've mentioned are not recorded as "Cost of goods used" unless your selling them on as part of your business. I agree with STDFR33. It's a capital item. Capital items go on to the balance sheet. However the list of accounts that you've posted are all P&L accounts. The correct entry would be to debit Office Equipment Cost (balance sheet) and likely credit Bank (P&L). A second entry would then be needed to account for depreciation in the year This entry would be credit Office Equipment Depreciation (balance sheet) and debit Depreciation (P&L). Next, assuming you'd be claiming AIA on the purchases you'd need to enter a journal to deal with Deferred Taxation.