doing my own accounts

soccercrew

2nd year trading and going to be doing my own accounts however ive a few questions. If im buying 2nd hand tools/equipment from the uk, can i put them down as expenditure. Even what if say i buy them from the likes of screwfix uk, can i claim back vat on them along with putting them down as expenditure.

Have been buying 2nd hand scaffold, mixers and tools from screwfix and want to put these in my accounts properly.

adrianw

If you are Irish VAT registered and buying from a UK VAT registered business, the seller should not charge VAT.

You do have to account for the Irish VAT on a 'reverse charge basis', however, the end result is the purchase is VAT neutral.

With regards expenses, whether its expenses or capital will depend on the life expectancy of the tools purchased.

However based on the description of tools - they would most likely be capital and would be expenses over a number of years, most likely eight years.

exaisle

OP....do your own accounts but go get an accountant to review them and prepare your tax return. The very fact that you mention that the tools are second hand suggests that you're not entirely sure of what you're doing and in fairness, the kind folk here will offer advice but it's all worth just as much as you pay for it.

My guess is that the few quid an accountant might cost would be well spent. In my experience, people doing their own accounts tend to make a mess of it, and not always in their own favour.

mcneil

adrianw wrote: »

If you are Irish VAT registered and buying from a UK VAT registered business, the seller should not charge VAT.

You do have to account for the Irish VAT on a 'reverse charge basis', however, the end result is the purchase is VAT neutral.

With regards expenses, whether its expenses or capital will depend on the life expectancy of the tools purchased.

However based on the description of tools - they would most likely be capital and would be expenses over a number of years, most likely eight years.

Can one not write full amount of say a drill into his expenditure or is it broken down year by year. So if the drill was 100euro, only 20euro a year gets put down as expenditure?

CIARAN_BOYLE

mcneil wrote: »

Can one not write full amount of say a drill into his expenditure or is it broken down year by year. So if the drill was 100euro, only 20euro a year gets put down as expenditure?

capital items are written off over 8 years with a balance expenseable in the year disposed of it disposed of in less than 8 years. Is a drill a capital item?

mcneil

CIARAN_BOYLE wrote: »

capital items are written off over 8 years with a balance expenseable in the year disposed of it disposed of in less than 8 years. Is a drill a capital item?

Haven't a clue! I honestly thought things like scaffolding, 2nd hand vans, tools all wrote off in that year.

barneystinson

mcneil wrote: »

Haven't a clue! I honestly thought things like scaffolding, 2nd hand vans, tools all wrote off in that year.

That's why you aren't an accountant I suppose..!

Xyzforsure

barneystinson wrote: »

That's why you aren't an accountant I suppose..!

Amen bro.

Write off everything and send it in.

exaisle

Xyzforsure wrote: »

Amen bro.

Write off everything and send it in.

That's downright irresponsible advice.