Old receipts

[Starlight]

Hi there.

I've got a number of receipts dating back a few years that I've obtained when purchasing equipment for my business. Would my accountant be able to use them to offset the tax bill?

Thanks in advance.

Mendoza.

[theoloyla]

Ask your accountant.

[Vectis]

It's possible to transfer assets onto your books at fair market value. Suppose for the sake of argument you're talking about a pair of speakers, bought 3 years ago for £1000. The going rate (eg. eBay) for same set of speakers, same age, same wear and tear is £250. You'll be able to put these onto your asset register at £250 and claim future depreciation as a business expense.

Long story short, yes, but don't expect anything like the original purchase price being offset against your tax bill. All you'll be able to claim is 40% of the transfer value if you transfer them in during year 1, otherwise 25% of the transfer value. Then ongoing you'll only be able to claim depreciation at 25% per annum against the ever reducing book value. So that £250 worth of speakers might be worth £40 in your pocket year 1 then around £20 year 2, £17 year 3 etc.

The other thing to bear in mind is that the item then becomes owned by the business. If the business is wound up, the item must be sold and offset against any final tax claim (+ve or -ve).

As already stated, see an accountant ;)

[Starlight]

Thanks for the info vectisvibe, makes perfect sense to me :) :cool:

Thanks for your time ;)

Mendoza.