Slatted sheds in farm accounts

Lucoz

Hi all.
can I ask a quick question trying to help prepare dad's accounts
How do you carry a slatted shed in the balance sheet? is it the cost less grant? is it depreciated?
lastly what is the corect rate for capital allowances..

thanks so much in advance

viztopia

Yes. Cost less grant in balance sheet. Capital allowances are at 12.5% but check and see if you are in reps or anything else like this as you can sometimes claim the capital allowances quicker if you want. Did you claim back the bat on the cost of the shed? Also depreciation should be between 2-5% or over the expected life of the building but its not important for tax purposes as its added back to the profits. Any more questions let me know.

Lucoz wrote: »

Hi all.
can I ask a quick question trying to help prepare dad's accounts
How do you carry a slatted shed in the balance sheet? is it the cost less grant? is it depreciated?
lastly what is the corect rate for capital allowances..

thanks so much in advance

sonnybill

sorry didnt want to start new thread.

I bought a tractor for 11k in DEcember2015, revenue told me to claim 12.5% of the cost over 8 years.

Is this 1375 to be added into my accounts for 16,17,18,19,20,21,22,23, and i cant put the 11k that i paid in cash into my farm accounts for 2015?

duffysfarm

The 11k goes straight to the balance sheet and stays there for as long as you have the tractor. The 1375 is taken from your profits for the 8 years. You should depreciate it also in the accounts and you could use the same rate as the capital allowances. The depreciation will reduce your profits in the profit and loss and also the tractor in the balance sheet. At the end of 8 years the tractor should have a nil value. Does that make sense?

sonnybill wrote: »

sorry didnt want to start new thread.

I bought a tractor for 11k in DEcember2015, revenue told me to claim 12.5% of the cost over 8 years.

Is this 1375 to be added into my accounts for 16,17,18,19,20,21,22,23, and i cant put the 11k that i paid in cash into my farm accounts for 2015?

sonnybill

duffysfarm wrote: »

The 11k goes straight to the balance sheet and stays there for as long as you have the tractor. The 1375 is taken from your profits for the 8 years. You should depreciate it also in the accounts and you could use the same rate as the capital allowances. The depreciation will reduce your profits in the profit and loss and also the tractor in the balance sheet. At the end of 8 years the tractor should have a nil value. Does that make sense?

So I put the full amount down to farm in 2015? And 1375 is the depreciation that it loses .. Cool :-)

duffysfarm

What do you mean put the full amount down? The full amount is not an expense in any one year.

sonnybill wrote: »

So I put the full amount down to farm in 2015? And 1375 is the depreciation that it loses .. Cool :-)