Depreciation help?

monkeypuzzle47 MAAT, AAT Licensed Accountant Posts: 134 ? ? ?
A client (sole trader)I have just taken on has claimed capital allowances in 06/07 but not accounted for the depreciation in her accounts.
How do i calculate depreciation in her 0708 accounts? As Im having a mental block and cant think what to do.
Would i just re-value the asset as of this year and depreciate the item as normal, or would I work out last years depreciation and add it to this years depreciation to get back on track. Obviously this will make the net profit much lower for 0708 but wouldnt make any difference as far as her self assessment tax return goes.
I hope i am making sense.


  • K H
    K H Registered Posts: 81 Regular contributor ⭐ ? ⭐

    I think it depends on how much depn was missed last year and how the accounts look this year with two years depn in it.
    If these accounts are being given to the bank for lending purposes i would be inclined to alter the comparatives for the previous year to make the two years look similar and as you say for self assessment purposes it makes no difference.

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