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No depreciation..... over many years!

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Hi guys, 

I have a client who hasn't include any depreciation on assets for 7 years! They remain as a fixed asset under the same amount they were purchased for. Is it possible for me to start depreciating them now or will I have to go and amend previous years accounts.

Thank you all. 

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By WhichTyler
29th May 2020 13:47

Rstate PY in this year's accounts. You may need to do 3 balance sheets ut you don;t have to re-do all 7 years in full

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By Truthsayer
29th May 2020 14:00

Did the client prepare the accounts themselves? If not, what does the previous accountant say? Whether you need to make a PYA may depend on materiality.

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By TomR
29th May 2020 14:06

Client prepared the accounts herself - or in other words used the accountancy firm Google and Bing.

Thank you :)

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By Truthsayer
29th May 2020 14:13

In that case there is clearly no good reason for the lack of depreciation. You should not merely start depreciating them now. You should either put through seven years depreciation with disclosure in the current tax year if the amount is not of fundamental significance, or else do a PYA.

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