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  #1   IP: 90.32.134.33
Old 27-03-2017, 08:47 PM
furniss480 furniss480 is offline
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Default Depreciation

Do accountants (normally) depreciate machinery over a 5 year straight line method ?

ie .... 40k second hand machine - 10k value after 5 years useful life 30k spread over 5 years ?

Or are accelerated methods beneficial ? or does it all come down to circumstance ?

Im not bad at my job but fairly green when it comes to accounting - having got clobbered last year im looking to be more savvy
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  #2   IP: 94.197.121.36
Old 27-03-2017, 09:00 PM
MchaleBuildingServices MchaleBuildingServices is offline
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Default Re: Depreciation

Pass

I take the value off down to personal allowance then the rest is carried over at 20% per year till it owes 1000 (wda) I think that's the number ill need to check as this will be first year having to carry left over money from bought equipment
If you go on the hmrc website its all on there
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  #3   IP: 92.28.196.196
Old 27-03-2017, 09:04 PM
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Mintsauce Mintsauce is offline
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Default Re: Depreciation

I think it can depend on your accountant and the method he/she have a preference for.

I am used to the method you describe but the accountants know a lot more than one way I suspect. I would say no to your first question as that has been my experience.
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  #4   IP: 86.138.19.42
Old 27-03-2017, 09:06 PM
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JD450A JD450A is offline
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Default Re: Depreciation

Depends on your accountant, but depreciation is a good thing provided you don't intend to sell gear on too quickly.
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  #5   IP: 94.192.31.248
Old 27-03-2017, 09:14 PM
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Regy53 Regy53 is offline
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Default Re: Depreciation

depends on the kit but i would go for 16 % reducing balance year on year.

in the first 2/3 years if new you will be close on it, in years 4/5/6 you should make a bit.

if your buying premium brands then you could do less if you need it, or if your planning on keeping kit for 6 years plus you could get away with 12% at a guess, again reducing balance

it depends if you want losses or profits at sale
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Last edited by Regy53; 27-03-2017 at 09:17 PM.
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  #6   IP: 94.197.121.36
Old 27-03-2017, 09:20 PM
MchaleBuildingServices MchaleBuildingServices is offline
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Default Re: Depreciation

I bought my machine used and its probably worth more now than when I bought it
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  #7   IP: 90.32.134.33
Old 27-03-2017, 09:56 PM
furniss480 furniss480 is offline
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Default Re: Depreciation

Its different over here - bloody accountants are tax collectors.

They dont tell you what is best ( unlike my accountant in the u.k) they expect you to know how you want to play things.

Second hand machine 3300 hours ..... I was told 5 years seems short.
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  #8   IP: 86.130.22.106
Old 27-03-2017, 10:18 PM
mart1602 mart1602 is offline
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Default Re: Depreciation

my accountant makes me sign a disclaimer every year in case i forget to tell them something that later comes up
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  #9   IP: 82.69.54.243
Old 21-04-2017, 11:02 PM
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Muz___ Muz___ is offline
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Default Re: Depreciation

Inexperienced accountants wont give you advice on this, but for plant buyers it can be very important, so you should do some research because it can affect the tax you pay hugely. Over the last few years the rules have changed a lot , to our benefit , and then not so.

You can dictate the depreciation policy as to your needs .. but dont let your accountant fool you into thinking he is a good guy ... just because hes told you .. you dont have tax to pay this year .. he's just told you what you want to hear so you employ him next year .. what he hasnt said is ... if you dont buy anything next year , you'll have 20 grand to pay for example..... You need to do some forecasting to keep your bills low, and work out how to make the system work for you .. dont ask me how I know
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