Asset write off when full AIA claimed

Caspar1
Caspar1 FMAAT, AAT Licensed Accountant Posts: 26
I wonder if anyone can advise me, as I don't want to be claiming tax twice on an asset that has been written off for a sole trader.

The asset was afforded full AIA upon purchase of £3,500. Over the last 3 years has accumulated depreciation of £1,708 and has a value of £1,792 left in the accounts.

The asset was damaged and discarded during year 4, and therefore now has no value.

In essence he has lost something, but I don't want to affect his figures in the P & L, where he gets a tax allowance for something that has already been claimed under AIA. If I did put a DR (loss on disposal) in the P & L for the £1,792, I have assumed that I can't put a balancing charge on the SA100 because there was no value left, to counteract to make the tax saving nil.

Many thanks in advance.

RyanMIP

Comments

  • Caspar1
    Caspar1 FMAAT, AAT Licensed Accountant Posts: 26
    I think I have just worked this out. If I put the £1,792 to a nominal code for Fixed Asset Write Off, and treat it like depreciation in the accounts, it is then added back during the tax comp, so that no benefit is given for any tax savings.
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