Forum

topBanner
First Previous - Page 1 of 1 - Next Last

Business Start up costs

Acorn2oak
  • 167 posts
  • # 74949

Hi

I have acquired a PC, printer etc from a family member - how would i equate a value to this when setting up my own accounts?

Any guidance would be appreciated.

Regards

Acorn

  • "Helping small acorns become large oaks"

  • Quote
kjmcculloch
  • 1159 posts
  • # 74952

Use the current market value of these items.  So if the computer is worth £200, CR Capital £200 and debit Fixed Assets £200, or equipment expensed depending on your own system.

There's not really a science to coming up with a market value.  See what you can get a similar system for on ebay or gumtree.

Kris

Edited at 07 Oct 2011 07:46 AM GMT
  • 698 posts
  • # 74959

Hi Kris

As you say these items can be charged at the prevailing market value however Acorn you will have to make sure you can back that valuation up as HMRC may want to look at it if the they feel the goods are over / under valued.

If it was me I would not bother to record them items at all as they were free if I had given some payment for the goods that is what I would record.

I hope this helps

Kind regards
Stuart

  • Forum Moderator, South East & Greater London Regional Chairman

  • Quote
Acorn2oak
  • 167 posts
  • # 74966

Thanks Kris & Stuart

The embarrassing fact is that the computer belonged to my son (so i probably did pay for it) and he has let me have it because he has now got a new laptop.

Cheers Acorn

  • "Helping small acorns become large oaks"

  • Quote
kjmcculloch
  • 1159 posts
  • # 74975

Although I see what you are saying Stuart, I would still always put them through my books at market value.  For me minimising profit, and therefore tax is key.  I'd rather not pay HMRC a penny more than I legally need to.

A print out from ebay to show their market value should be enough to satisfy HMRC.  And of course, you have the computer on your desk.  It must have come from somewhere, proof enough?

Kris 
First Previous - Page 1 of 1 - Next Last
bottomBanner
loading