Loss due to theft

honada
honada Settling In NicelyRegistered Posts: 28
Hello
Could I report loss due to theft as an expense on a subcontractor self assessment. Appreciate your help and advise.
Thank you.
Honada

Comments

  • MarieNoelle
    MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
    And bonus question: was it covered by the insurance?
    mrme89
  • honada
    honada Settling In Nicely Registered Posts: 28
    My client's van where the tools are left overnight has been broken into and all gone. My client is a joiner and the tools are related to his line of business. They have been accumulated through his career. No depreciation accounting has been taken into consideration. The tools are not insured. They have been replaced by purchasing new tools gradually. So what I intend to do is list the missing tools, estimate the market value and deduct a straight line depreciation amount based on the information that my client will give me. Will that be acceptable?

    Thank you for your help.
  • honada
    honada Settling In Nicely Registered Posts: 28
    So because I have not claimed capital allowance for the old tools therefore I will not be able to claim a loss for the value of such tools

    OK thank you
  • burg
    burg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    If I understand correctly then I would do the following:-

    Give the tools a market value at date of introduction
    Enter ready for CA's (only WDA's as froma related party)
    Dispose of all items with nil proceeds therefore creating balancing allowances
    Enter new tools as purchased and claim CA's where applicable.
    Regards,

    Burg
    MarieNoelle
  • RyanMIP
    RyanMIP LincolnshireRegistered Posts: 50
    edited March 2016
    I would value everything that was stolen and claim it as a loss (expense)

    Ryan
  • honada
    honada Settling In Nicely Registered Posts: 28
    Thank you all for your comments, so Ryan as I understand from your comment that is is acceptable to value the stolen tools and claim it as an expense as long as there is no insurance claim.

  • MarieNoelle
    MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
    Please follow the advice given by burg and mrme89!
  • RyanMIP
    RyanMIP LincolnshireRegistered Posts: 50
    honada said:

    Thank you all for your comments, so Ryan as I understand from your comment that is is acceptable to value the stolen tools and claim it as an expense as long as there is no insurance claim.

    You understand me correctly

    Ryan
  • honada
    honada Settling In Nicely Registered Posts: 28
    Enjoy, and answering your earlier question, no the items have not been claimed as capital allowance or as a revenue deduction.
Privacy Policy