A guide to the Capital Assets report

This article explains how to access and understand the Capital Assets report in FreeAgent.

Navigate to the ‘Accounting’ tab at the top of the screen and select ‘Reports’ from the drop-down menu.

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In the ‘Breakdown’ section, select ‘Capital Assets’.

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What you'll see here is each asset that your business has bought, listed at its net book value. Net book value is the net of VAT price, less depreciation.

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FreeAgent will then work out its depreciation over its useful life. If the business is a UK Limited Company, FreeAgent will also work out the capital allowances you can claim against your corporation tax bill.

The first year's worth of depreciation is posted on the day the asset was bought, because an asset immediately loses part of its value when it is no longer brand new.

Then, every year on the anniversary of the purchase of the asset, FreeAgent will post another year's worth of depreciation, until the asset's useful life has finished. The asset would then be referred to as 'fully depreciated'.

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