my accountant told me it was a expense and we wrote it off accordingly
I'm not sure this is correct. If you have to replace the laptop after two years, the following situation applies:If you replace your laptop every 2 years then you write it off over 2 years
If you buy a laptop today and you pour coffee over it tomorrow then you expense it in this years accounts
1st year - no capital depreciation, so nothing in accounts
2nd year - you would be entitled to depreciation of 12.5% of the net cost (as you would also be for the next 7 years). In this case, as you are writing off the asset (i.e. disposing of it), you can write off the full value (less anything you earned in writing it off) in the second year. This appears to be known as a balancing charge (can't they just call it a write-off?). I don't know if the revenue will ever look for evidence of the write-off.
So if you scrap it, because it's not up to the job of doing business with it anymore, but give it to the children to play on that's okay?If you are a sole trader, you can't sell anything to yourself (but you can cease to use it for business purposes).
Sale includes scrapage for the purposes of a balancing allowance.
a direct replacement (not an upgrade) of a lost/stolen laptop would in my view count as an expense in most cases - the facts of each individual case can determine whether or not this is a possibility.
ha, as if a laptop that will last 8 years!
ha, as if a laptop that will last 8 years!
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?