How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 8705
Type Your Tax Question Here...
bigduckontax is online now

I am a smallish sole trader, turnover £72000. I have a

This answer was rated:

I am a smallish sole trader, turnover £72000. I have a question about bookkeeping for asset sales. In the past I have purchased equipment and used AIA to account for them for tax reduction in that year. I then did not keep a balance sheet item to record my assets, as I was not required to do a balance sheet at all. After several years I am about to sell some of them. My software advises doing complicated asset journal entries to account for depreciation which I never used before. If I sold anything I'd just record the sale as income for tax purposes. Is this ok to do as I know my accounts won't reflect my asset position but my tax should be correct at the end of the year. I know there is a "box 26" on the self assessment return for this but does it matter if I use it or not as long as I am paying the right tax...
JA: What are the assets here? Are they current or long-term assets?
Customer: Computer equipment over £150 each item.
JA: Anything else you want the Accountant to know before I connect you?
Customer: As long as I have all my records of asset sales and purchases does it matter which box of the self assessment form they go in to reflect any income from the sale?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Were att these AIA entries at 100%?

Customer: replied 8 months ago.
I claimed 100% tax rebate in the year purchased using the self assessment form. I think my accountant at the time reduced the amount claimed by an amount of any asset I'd claimed AIA for that I sold in that year

Your accountant's action was quite correct. All you have to do if you sell an asset on which you received an AIA of 100% is to include the sum received as a balancing charge which is what was done by your accountant earlier.

I would like to talk to you; from long experience, however, I think yoi will find it easier to ring me; I am on 01750 725420.

bigduckontax and other Tax Specialists are ready to help you

I think we covered everything in the telephone call.

Thank you for your support.