Ending self-employment

zillamoog

Hi,

I ended self-employment about six months ago. I'm wondering how to sort out the 08/09 assessment; mainly what to do about stuff (assets, I guess) I bought for business purposes, for which I used capital allowance for my 07/08 return. Do I buy them back? And at what rate/price? What happens to the leftover money in the business? I'd still make a loss anyway!

I tried looking on the hmrc but couldn't find anything useful - it's all about starting self-employment rather than getting out of it...

Anyone have any idea? Thanks!

fengirl_2

If you were a sole trader, the assets, including the cash, are yours anyway. You just do what you want with them.

zillamoog

Thanks!

So I'll just put in expenses as usual for this year til I ended self-employment...
That's easy enough - but would the nice tax people question the fact that my business generated no income this year and that I just "absorbed" business equipment for personal use?

Maybe I shd ring HMRC!

Debt_Free_Chick

I assume that you transferred the assets to the business, so they're shown on the balance sheet and you claimed capital allowances on them?

If so, then yes you need to show the "disposal costs" which is effectively the market value at the date you transferred them back to yourself. You just need to make a reasonable estimate. If the market value is less than the pool value, then you need to record a balancing allowance.

Have a look at pages 8 & 9 of the SA103 notes and the examples that follow.

Savvy_Sue

zillamoog wrote: »

Maybe I shd ring HMRC!

I have to say I always found them very helpful!