How to use it
- 1Add each item you keep for use in the business, on the day you buy it, with the supplier and cost.
- 2Record the cost without VAT if you're VAT-registered and reclaim it, and with VAT if you're not.
- 3Choose the asset type and the capital allowance you claimed. Cars can't go under the annual investment allowance.
- 4Enter a useful life in years if your accounts depreciate assets. The sheet works out straight-line depreciation for the accounts.
- 5When an asset is sold, scrapped or given away, enter the date and what you got for it. The status changes to Disposed.
What each field means
- Asset
- What the item is.
- Serial number or location
- Enough to find and identify it.
- Date bought
- Usually the contract date. If payment is due more than 4 months later, the date payment is due.
- Cost
- What you paid, including delivery and installation.
- Asset type
- Sets which allowances are open to it.
- Capital allowance claimed
- The allowance or pool the cost went into.
- Annual depreciation
- Cost divided by useful life. For the accounts; tax uses capital allowances.
- Disposal proceeds
- What you got when it went. This value comes out of the pool.
What counts as plant and machinery
Capital allowances are claimed on items you keep to use in the business: equipment, machinery, business vehicles, integral features of a building such as heating and electrical systems, and some fixtures like fitted kitchens. Land, structures and buildings aren't plant and machinery, though structures and buildings allowance may apply.
Most plant and machinery can go under the annual investment allowance, which deducts the full cost in the period you bought it, up to the AIA limit. Cars can't: they go into a pool and get writing down allowances.
Sole traders using cash basis claim equipment as an expense and only claim capital allowances on cars, so the register is mainly a record of what the business owns.
Pools and disposals
Costs that don't get a full deduction go into the main pool, the special rate pool (integral features, long-life items and higher-emission cars) or a single asset pool. Each year you add new costs, deduct the value of anything sold or disposed of, and claim the pool's writing down rate on the balance.
If the value you deduct is more than the pool balance, the difference is a balancing charge on your tax return. The disposal columns are the record behind that figure.
Licence and disclaimer
Free to use, copy and adapt for your own business or personal records. Please don't resell it or republish it as your own template.
A template is a starting point, not advice for your circumstances. Check the result against the GOV.UK guidance linked below, or ask an accountant.
Related
What else will you need?
- ChecklistLimited company year-end checklistAt a limited company's year end, reconcile every bank and loan account, list unpaid invoices and bills, count stock, record asset purchases, review the director's loan account and check dividends were minuted.
- TemplateCash bookA cash book is a running record of every payment into and out of a business bank account, with the balance after each line.Excel
- TemplateSole trader income and expenses trackerA sole trader income and expenses tracker records every sale and business cost through the tax year, so the self-employment pages of your tax return come straight from the totals.PDFExcel
Rather we did it?
Countify can handle this for you, for a fixed fee agreed upfront.
Questions
Frequently asked questions.
Is depreciation the same as capital allowances?
No. Depreciation spreads an asset's cost across its life in your accounts and isn't deductible for tax. Capital allowances are the tax relief. The register records both.
Which date counts as the purchase date?
For the annual investment allowance, the date you signed the contract if payment is due within 4 months, or the date payment is due if it's later.
Do I need a register if I'm a sole trader on cash basis?
It's still useful. You'll need cost and disposal records for cars, which get capital allowances, and a list of equipment helps if you later switch to traditional accounting.
Checked against GOV.UK on · Reviewed by Kamran Ishaq FCCA, Founder & CEO, on .
Sources: Claim capital allowances: what you can claim on (opens in a new tab) (HM Revenue & Customs); Claim capital allowances: annual investment allowance (opens in a new tab) (HM Revenue & Customs); Work out your writing down allowances: rates and pools (opens in a new tab) (HM Revenue & Customs); Work out your writing down allowances: what you can claim (opens in a new tab) (HM Revenue & Customs); Running a limited company: company and accounting records (opens in a new tab) (HM Revenue & Customs).