Selling Capital Allowance Purchases

[MDE200]

I run an eccomerce business and had purchased a laptop, which was filed as a capital allowance on a previous self assessment.

Unfortunately, I have broken the laptop and would like to sell what remains of it.
Where do I put this sale in my bookkeeping?
Does it go with the sales in my eccomerce business, or is there a special way to account for the sale of capital allowance items?

Thanks

 

[Scalloway]

If you have claimed capital allowances on it you need to work out the difference between Written Down Value (WDV) and the proceeds of the sale. If you get back more than the WDV the difference goes in Capital Allowances as a Balancing Charge and is added to taxable profit. If you get get back less than the WDV the difference goes in Capital Allowances as a Balancing Allowance and is deducted from taxable profit.

 

[S2K]

Re bookkeeping entries, this does not go in revenue. You will need to debit the accumulated depreciation and also debit bank, credit the fixed assets and then the balancing figure is either debit or credit of disposal of fixed assets account, although some chart of accounts may call it slightly differently.

 

[MDE200]

Thank you for your clarification.
I am also VAT registered, am I required to include VAT in this sale?

 

[Scalloway]

Yes you must charge VAT.