Preparing for Your Annual Accounts

7. Fixed Assets

Fixed assets include buildings (if you own them), equipment, vehicles, and 'fixtures and fittings' (eg shelving).

7.1 Keep a fixed assets register, detailing all the assets that the company owns.

• Break it down into different types of asset.
• A purchase date, purchase price, description and location for each item.
• Note any items that have been purchased, sold or scrapped during the year.Give your accountant a copy of relevant purchase or sales invoices or any other documents.
• An asset register makes completing your annual insurance form easy, as you can attach the list of assets.
• You can also record details which would be useful if say equipment breaks down (eg supplier contact details, PIN numbers etc).

7.2 Keep the documents proving ownership

7.3 The cost of fixed assets should be written off over time to the business, through a depreciation charge. These details can be recorded on the asset register.

• Generally depreciation cannot be offset against tax. Instead, you claim for some assets a capital allowance, using a rate of deduction which is fixed by HMRC.
• Small companies can get 100 per cent relief when purchasing certain fixed assets, so it is important to speak to your accountant before any purchase.