Accountants/bookkepers, I need some help

[norahjonesisnotmyname]

If I purchased some tools/equipment over the past few years and decide I no longer need them and sell them on Ebay, do I need to put in the full amount of sale price through my books as an income? When originally purchased new they were declared as an expense. Is it as simple as that or is there some rule that after a certain period they no longer need to be declared if they are sold? They sold for between £200 and £800 per piece.

When I sold a lot of 10 year-old office furniture earlier this year on E-Bay it was deemed to have no residual value due to depreciation so the modest proceeds were not declared as income although we retained the receipts and the cash went back to the company.

If you claimed them as expenses, then yes you would need to account for the income (and VAT thereon if you are VAT registered).

If they were treated as fixed assets and you claimed capital allowances, then the proceeds would need to go into your capital allowances computation.

Depreciation isn't relevant for tax purposes, as it is added back in calculating taxable profits and capital allowances are given instead.

That's great, thanks for confirming for me :)

Just in case there is any doubt:

"When I sold a lot of 10 year-old office furniture earlier this year on E-Bay it was deemed to have no residual value due to depreciation so the modest proceeds were not declared as income although we retained the receipts and the cash went back to the company." - This is wrong

"If you claimed them as expenses, then yes you would need to account for the income (and VAT thereon if you are VAT registered)." - This is right

Yes, sorry should have been clear, I will be accounting for the income from the sale of the tools and equipment :)

MrAnchovy is as always correct. It is easiest if you think of it that your business purchased them therefore if they are owned by the business (part of it's assets) then sold the money goes to the business.