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Closing my Ltd - bicycle disposal

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    Closing my Ltd - bicycle disposal

    My accountant ceased trading some time ago and since then I've been using FreeAgent to DIY my accounts. I'm now looking to wrap up my company. The accounts are simple and I've previously submitted CT600 and EOY accounts myself so am considering doing this myself too.. the company is not holding much cash so I don't need to worry about efficient extraction etc

    The main lose end to tie up is the purchase of a company bicycle last April on which I have a couple of queries: I understand I need to add a balancing charge for this as it was purchased within the final year of trading. Has anyone found a way to do this in FreeAgent? I also need to dispose of it referring to HMRC eim21667a. The bike is valued at 25% at 1 year and the document suggests using a 'sliding scale' to interpolate. The bike will be 10 months old on disposal. Depreciation is very non linear - a big chunk occurs on day one in reality - so how would you treat a bike under one year?

    Thanks

    #2
    25% of the original cost. Don't overthink it.

    There is a journal facility in FreeAgent do deal with the disposal. If you don't know how to do this, pay an accountant or else ask someone who does (Accountigweb?).
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

    Comment


      #3
      If you have no accountancy costs then you could consider de-registering for VAT, and making the company dormant.
      When the bike has devalued entirely then close the company.
      See You Next Tuesday

      Comment


        #4
        Originally posted by Scruff View Post
        25% of the original cost. Don't overthink it.

        There is a journal facility in FreeAgent do deal with the disposal. If you don't know how to do this, pay an accountant or else ask someone who does (Accountigweb?).
        Or just freeagent support?
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by Lance View Post
          If you have no accountancy costs then you could consider de-registering for VAT, and making the company dormant.
          When the bike has devalued entirely then close the company.
          Yes I've considered this though legally I would not be able to use the bike during this period I imagine. It would however mean I have to keep paying my FreeAgent subscription. Are there any other pitfalls to this approach other than the hassle of dormant co accounts?

          Comment


            #6
            Originally posted by Scruff View Post
            25% of the original cost. Don't overthink it.

            There is a journal facility in FreeAgent do deal with the disposal. If you don't know how to do this, pay an accountant or else ask someone who does (Accountigweb?).
            I've found the disposal section in the journal but don't think this will add a balancing charge as FreeAgent has no way of knowing this is my final year of trading.

            Comment


              #7
              Is the bike purchased and disposed of in the same financial year?

              Comment


                #8
                Originally posted by Craig@Clarity View Post
                Is the bike purchased and disposed of in the same financial year?

                Yes

                Comment


                  #9
                  Originally posted by Rafd View Post
                  Yes I've considered this though legally I would not be able to use the bike during this period I imagine. It would however mean I have to keep paying my FreeAgent subscription. Are there any other pitfalls to this approach other than the hassle of dormant co accounts?
                  Move to Natwest or RBS and you get FreeAgent for free
                  Originally posted by Stevie Wonder Boy
                  I can't see any way to do it can you please advise?

                  I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

                  Comment


                    #10
                    Originally posted by Rafd View Post
                    Yes
                    How much was it?

                    Comment

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