Fixed Assets confusing

[Viking]

I am using the Sole Trader program and it is excellent so far but I am confused with fixed asset entry, what is "Written Down" value? How do I continue input into next year for each asset? How long do assets stay on the sheet etc. A filled in example or 2 covering 2 or more years would be a big help. Help Please, Regards.

[antonycc]

This is the amount of the cost of the asset not yet counted against profit. For existing assets you enter the purchase price and depreciation since purchase to get calculate the "Written Down" value at the begining of the trading year.

The package will caluculate the depreciation and the value at the end of the year. This is then used in the next years sheets.

Once the Written down value is negligable you retain the asset to track it as something owned by the company but don't offset profits against it anymore.

Eventually you'll sell it or scrap it in which case the sale date and value is entered in the the same sheet and you no longer need to carry it over.

[Viking]

Thanks for your swift response, I'll do some entries and follow your advice. Could you please explain why most entries have 1st year allowance at 100% so there is no written down values to carry over.

Also most of the items I purchase are computer based sound recording equipment with a life of approx 2 years before they are outdated in this highly competitive field. eg a £1000 computer card would take many years to reach negligible written down value and would have been scrapped. any thoughts on this?

[antonycc]

This was a new rule brought in allowing the cost of items to be claimed back eniterly in the first year. This is optional.

For your depreciating equipment you change chane the depreciation rate to 50% of this defensibly reflects reality.

[Viking]

Thanks that is now much clearer and makes life so much easier. Looked for info on this on HMRC site, nothing! Ah well that's government for you.
Thanks for your help