Loss due to theft

honadahonada Settling In NicelyPosts: 28Registered
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

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    And bonus question: was it covered by the insurance?
    mrme89
  • honadahonada Settling In Nicely Posts: 28Registered
    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 They have been replaced by purchasing new tools gradually.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.
  • honadahonada Settling In Nicely Posts: 28Registered
    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
  • burgburg Experienced Mentor GloucesterPosts: 1,440Moderator, FMAAT, AAT Licensed Accountant
    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
  • RyanMIPRyanMIP LincolnshirePosts: 50Registered
    edited March 2016
    I would value everything that was stolen and claim it as a loss (expense)

    Ryan
  • honadahonada Settling In Nicely Posts: 28Registered
    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.

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    Please follow the advice given by burg and mrme89!
  • RyanMIPRyanMIP LincolnshirePosts: 50Registered
    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
  • honadahonada Settling In Nicely Posts: 28Registered
    Enjoy, and answering your earlier question, no the items have not been claimed as capital allowance or as a revenue deduction.
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