Annual Investment Allowance (AIA) and Selling an Asset
I've got a couple of examples and a few questions, if any one can answer them it would be a great help. Thank you.
Example A: I filled in my first self-assessment tax return last year (2009/2010) and had an Annual Investment Allowance (AIA) of £500 for a computer. This tax year (2010/2011) I sold the computer for £300.
Question 1: Do I put the £300 down as a Capital Allowance this tax year? And put the difference of £200 as a Balancing Charge?
Question 2: Does any Balancing Charge add to my taxable income?
Question 3: How do I go about invoicing this? Do I invoice regularly as a sales invoice or do I need to draw up an Asset Purchase Agreement (I read about that somewhere!)?
Example B: I filled in my first self-assessment tax return last year (2009/2010) and had an Annual Investment Allowance (AIA) of £100 for a hard drive. This tax year (2010/2011) the hard drive broke and went in the bin.
Question 1: Do I put a Balancing Charge of £100 down for this tax year?
- Can an owner hold company money 294 6
- Account and Taxable Profit 283 17
- Accounting for corporation tax 200 6
- Class 2 NIC 255 5
- Probate services 427 9
- Is self-employment "another job" for PAYE 375 7
- Is Xero payroll as rubbish as I suspect it is? 1,702 37
- Vat payable on van 132 1
- Bookkeeping Rate of Pay 2,829 42
- Invoices raised after company dissolution 241 7
- Community Faux Pas 930 26
- Cash gift from India 127 1
- Is cloud accounting actually pretty pants? 2,308 40
- Windows10 179 4
- Taxi Drivers Cost of Sale 622 24
- Digita Accounts Production Advanced - general perception 472 25
- A thursday afternoon muse 233 2
- Barrister "M25 Patch"? 391 6
- Is HMRC Basic Tools basically wrong? 872 5
- Unusual marketing methods for accountants 795 14
- ACCA Shenanigans subject of EDM 835
- Benchmark accounting software 691
- Members in Public Practice 515
- Sole trader registering for the first time 328
- Oplex Careers CPD 321
- What are HMRC implying? 305
- VAT 257
- My own & spouse's Irish returns & ROS 248
- Payroll manager and the cloud 218
- Is the APN valid 196