Introducing personal items into business

col_b96

Hello,

A query or 2. I am registered as a sole trader and have been for 6 years. This year a healthy profit means it is feasable to and I wish to put some equipment which I use for sole business use into the business which I have owned personally since before the 6 year period.

I presume I cannot claim AIA, and it is simply a case of entering at market value, and then an 18% WDA yearly from then on?

Also, last year, I purchased some equipment (effectively with personal cash) to use for the business. Entering it last year would have produced a significant loss. Can this be enterered now as new, or is it a case of market vale/WDA again, as above. Or is there another approach

Thanks in advance

Suarez

If you are a sole trader then you are the business. You can claim capital allowances on certain items (Check HMRC website for full list)

Do you have an accountant? If you had made a loss you can carry this forward to put against any future profits.

nomunnofun

Try to divorce yourself from your business when viewing the tax treatment. Accordingly, your business have purchased some equipment from you at a value. You can claim AIA on that value.

On the second point, you use the value of the equipment at the time that it was introduced, not what was paid for it.

The other issue ,if you have a balance sheet , is to show the total value of the items as cash introduced as, obviously, there will be no bank debit entry for the equipment.

col_b96

Thanks. With the items i already own, Is there not an issue with connected persons when I effectively sell to myself ?

nomunnofun

col_b96 wrote: »

Thanks. With the items i already own, Is there not an issue with connected persons when I effectively sell to myself ?

No - the value is the value if you are indeed a sole trader.

Now - shares in a Ltd company - that this a different thing but I am happy to admit that CT has never been a specialism.

col_b96

Thanks. I must say I read many different opinions on this and still am not sure. I have an bout 9k worth of kit owned personally seems to me I can introduce to sole trader business but only claim 18 % per year. The same situation with the 6 k of kit I bought last year, still technically personally owned . Any other thoughts ?

Davide123

col_b96 wrote: »

Thanks. I must say I read many different opinions on this and still am not sure. I have an bout 9k worth of kit owned personally seems to me I can introduce to sole trader business but only claim 18 % per year. The same situation with the 6 k of kit I bought last year, still technically personally owned . Any other thoughts ?

Yes only 18% per year.

Re the last year amounts, my only thought is that perhaps amend you tax return for last year and claim 100% aia on the 6k, (or less if any private use)

Perhaps get an accountant, you missed out on thousands on this