Writing things off & selling things

[szolty]

Just wondered how you write things off or sell things on your books??

If you sell do you just whack it through on weekly sheet (using ncma pprwork) as item sold then in misc section?

If it sells for less then it is a loss and do you have to show that somewhere?

Writing things off cause they are trashed etc...... How does that work?

So far my accounts have been pretty simple but a couple of things have broken beyond repair so had to bin and not sure how and a that.

Any words of wisdom would be ace.

[zippy]

As far as I'm aware any sales should be treated as income, as for writing things off I'd just make a note of what is was and put it in accounts file not sure if this is right though

[Chatterbox Childcare]

Why I purchase my toys they all go through as expenses - if they got broken or trashed they would go in the bin and I would buy more and put them against expenses again.

If you are buying something under Capital Depreciation such as a laptop and you are writing a percentage off each year and you had a breakage and had to replace it, my understanding is that you would write off the balance of the depreciation for that item. If you sold the item and it was more than the depreciation figure, then you need to put the credit into your books.

i.e. Laptop = £1000
write off over 3 years (example only) £300
Balance = £700
You sell for £400
Write off additional £300

If you sold for £1000 then you need to show a credit of £300

Hope that makes sense

If there is anything else, Mr A will be about soon I expect

[MrAnchovy]

If you sell do you just whack it through on weekly sheet (using ncma pprwork) as item sold then in misc section?

It depends how you treated it when you bought it. If you treated it as Annual Investment Allowance you should enter the proceeds as a Balancing Charge on your tax return. If you put it through your expenses you should include the proceeds as income; note this is not "income from childminding" so you cannot take the 10% wear and tear allowance on it. If you are claiming Writing Down Allowances you should reduce the value of the asset pool by the amount of the proceeds; any excess becomes a Balancing Charge.


If it sells for less then it is a loss and do you have to show that somewhere?

No, you have already got tax relief by claiming the whole of the cost so you don't get any more tax relief for the loss.


Writing things off cause they are trashed etc...... How does that work?

You don't do anything - you have already got tax relief when you bought them.