Showing Depreciated Asset Values on Accounts submitted to HMRC

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18 Nov 2008
n j hobbs from
Logic1st
We are a Ltd company needing information on submitting accounts to HMRC. Up to this year accounts were very straightforward, hence no accountant.

Now we have purchased business property and other assets, and have incurred both revenue and capital expenses in relation to the purchase and preparation of the new property.

I understand that the depreciation has to be added back in to the accounts along with any capital expenses when they are submitted to the revenue. However, I can't find information on how this is actually done.

Do I need to just add them back into the profit and loss and then leave the balance sheet prepared for companies house as it is and submit this (with explanatory notes). Or do I need to do a new balance sheet as well? At the moment the balance sheet shows depreciated asset values which are correct for Companies House, but do I need to increase the value for HMRC?

Clearly we need an accountant now that things are more complicated, although I feel I am at the last hurdle on the accounts in question.

Thank you very much
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Hi there,


Sounds like you really are very close - as long as you have depreciated asset values in the balance sheet then this is basically correct. The 'add back' refers to the tax computation which is a piece of work that sits between the accounts and CT return. You are then allowed to deduct capital allowances from your profits before arising at profit for tax. As you have incurred some capital expenditure i would recommend that you engage an accountant to help you with the computation and tax return this year, which by itself should not be too expensive.


Let me know if i can be of any further assistance


Regards


Tim Brown

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Hi,

E-mail me at tim@grosvenorhousepractice.co.uk, if you could give me an idea of your turnover and your year-end date, we can start off with a basic quote for preparation of the corporation tax return, which would include unlimited telephone and e-mail access, and adjust to suit your exact needs.

Regards

Tim Brown
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20 Nov 2008
n j hobbs from
Logic1st
Dear Tim
Thank you very much for the comments you have made. Could you give me a rough idea of the telephone cost for further advice if I require it? Do you charge an hourly rate?
What information would you need to give me a rough costing to check our accounts each year before submission? I am quite happy to do the actual submission myself, and provide profit and loss and balance sheet. We are Sage resellers so use Sage for our own accounts.
Many thanks for your assistance
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