[wightsurf]

With tax coming up, i thought this might help 
Taken from here :> http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791594&type=RESOURCES

The value of your tangible or physical assets, such as vehicles, machinery and equipment, will fall as they are used and eventually wear out. This is depreciation and is used in your business accounts to write off the value of the assets over time.

Depreciation means the cost of the asset is spread, so it is written off against the profits of several years rather than just the year of purchase. Depreciation is not allowable for tax. Instead you may be able to claim the cost of some assets against taxable income as capital allowances. For more information, see our guide on capital allowances: the basics.

To work out depreciation you need to know:

the date you started using the asset
the asset's estimated useful life
the asset's initial cost
any possible value it may have at the end of its use - eg to be reused or reconditioned, or as scrap
any costs that may be related to disposal
Work out depreciation using the worksheet on the biz/ed website - Opens in a new window.

[formb]

Good post thanks.

[wightsurf]

I wonder how many sole traders without accountants use it .