Hi, I have a new customer who is starting a business with some cash and a lot of equipments (large machines and such), I'm sure I just treat them the same as an introduction of capital and debit the capital account and credit the asset account and then just depreciate them every year as normal but I'm doubting myself is this correct? Also what are the benefits of treating items as an asset as apposed to an expense, I know you have to depreciate them every year, but depreciation isn't an legatiment expense on the self assessment forms and they have to be treated as capital allowance, so is that better for reducing the amount of tax payable?
Thanks!
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