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What are the entries to account for EV purchase?

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What are the actual entries for the purchase of an EV? Its for a Limited Company. Are their any notes that should be included in the accounts. Also, what account should the running electric charge be debited to? Motor Running costs, or are others setting up a separate account? Thanks.

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By Wanderer
20th Sep 2021 17:49

Seriously?

What do you think the relevant entries should be?

What would you do with a non electric vehicle?

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By Winnie Wiggleroom
21st Sep 2021 08:11

Dr the window, Cr the door I was always taught, or was it the other way around?

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Replying to Winnie Wiggleroom:
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By Mr_awol
21st Sep 2021 08:37

Dr the door, obviously.

It's loose cannons like you going round debiting the window that caused the 2008 financial crisis..........

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Replying to Winnie Wiggleroom:
By SteveHa
21st Sep 2021 08:41

Depends which way you are facing.

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Replying to SteveHa:
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By Mr_awol
21st Sep 2021 08:57

More reckless behaviour.

Move the desks around. If necessary get the builders in to swap the window and door around.

Under no circumstances mess around with the integrity of the door/window Dr/Cr system

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Replying to Mr_awol:
paddle steamer
By DJKL
21st Sep 2021 09:37

With EVs you now really have to start re thinking outside the box,, accordingly you Debit Green and you Credit Red. Effectively what Quentin was describing in Reservoir Dogs was actually a nominal coding system.

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Replying to DJKL:
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By Mr_awol
21st Sep 2021 10:22

Also, have you seen those little Japanese work pods? Like a small shipping container - about 1m wide and 2m deep, with a desk at the end.

They are air conditioned with no window and the door's at the back, behind you. How the hell you're supposed to post a journal from one of those is beyond me!

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By Mr_awol
21st Sep 2021 08:56

Um, the entries depend on how the purchase if financed. As for notes, you might want to consider a fixed assets note, and may or may not have disclosures on HP/security/leasing commitments, etc .

Ignoring the first bit of your question, which is, shall we say, daft - the second part has some slight merit. It will depend on how much electricity is consumed, whether the cost is easily identifiable, whether the client cares enough to bother separating it, etc.

If it's a huge factory paying tens of thousands of pounds for electricity already, has one Nissan Leaf that's charged every ten days, and there's no separate supply, obviously the cost stays within the main charge. If you've got a fleet of EVs then it is probably sensible to ensure you can split it out.

Most of our clients don't fall into either camp so it's worth discussing with the client and seeing what is/isn't possible, explaining the implications etc - which is what gives the question some relevance but doesn't enable anyone to answer it.

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By Duggimon
21st Sep 2021 09:01

Debit Electric Vehicles and credit Stationery, on the assumption you paid for the car with novelty pens.

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By Leywood
21st Sep 2021 09:21

I think you need to re-assess your understanding of notes to the accounts/over disclosing as it is, before even involving the EV.

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Replying to Mr_awol:
By Duggimon
21st Sep 2021 10:33

This kind of stuff is weird and completely unnecessary.

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By cherrytelevision
21st Sep 2021 14:15

If it is an outright purchase as you say (rather than a hire purchase, a lease or something else) then Dr Fixed Assets Cost of Additions, Cr Bank. Depending on the use, some VAT may be recoverable too. The running costs are for a vehicle and so would be charged to Motor Running Costs.

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By I'msorryIhaven'taclue
21st Sep 2021 17:21

Be sure not to overcharge it ;-)

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By paul.benny
22nd Sep 2021 07:13

Yet another OP who doesn't appear to have any interest in the answers to their question.

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Replying to paul.benny:
By Duggimon
22nd Sep 2021 09:05

If I was the OP I wouldn't have come back to this cesspit of a thread either. Perhaps he's not keen on having people research his company online, commenting on their accounts which are entirely irrelevant to the question and then posting his Linkedin page for no reason at all?

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By AnnAccountant
22nd Sep 2021 13:11

Is this a genuine question or is this another example of people, companies and various bodies trying to elbow certain "talking points" into any and every place they can find - to influence people with repeated messaging.

Here we have this old guy mentioning EVs (even though that seems pretty irrelevant), then AWeb has all manner of daily articles about diversity and even managed to elbow food poverty into the mix recently.

This seems to be a trend that is on the rise - and one that I gather is funded to some degree by government, NGOs etc. In this case, I suspect this guy is just past it. In the AW articles, I wouldn't be surprised if there is some fees changing hands.

It's a growing trend I tell you.

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Peter Hall
By peter__hall
26th Oct 2021 15:35

OK...found what I was looking for. Make the value a disallowable item in the tax return, then claim. If the claim period straddles 1/4/2021 the value is shown in box 725 of the CT600. If the period starts on or after 1/4/2021 then the value is shown in box 726.

Thanks for your interest.

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