untied, fixed assets, capital allowances and depreciation

From time to time you may buy "fixed assets" - equipment and machinery that is intended to last a long time, or a scooter or van to be delivering things.

For most people

General rule - follow the money

untied works on what is known as the "cash basis". In broad terms, you just follow the money.

When you pay for something, it's an expense.

(Typically larger businesses spread the cost over several years - it's called depreciation in accounting terms, or capital allowances in tax terms. They also need to worry about whether a contract is a rental contract or a purchase contract. You generally don't.)

Cars - mileage option

Cars are an exception. You generally can't claim the cost when you buy the vehicle.

Instead of the cost of cars, for many people it makes sense to be claiming mileage. This covers the vehicle, fuel, insurance etc. Mileage is supported in untied and works for most people. See this article.

Cars - for those who need capital allowances

You can still claim capital allowances in untied.

This may need a professional advisor like an accountant to calculate the capital allowance - and if appropriate the business share. We don't take responsibility for this.

Entering capital allowances in untied - you need to be in untied in the browser (it is not in the mobile app)

The numbers can be entered into untied in the self-employment pages of untied in the browser (first tick to indicate that you want to see more options):

Then scroll down.

What untied doesn't support

untied does not support fixed asset registers (you'll need to manage this separately so you have a list of what you own).

What's a capital gain?

You probably want to be here.