cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Get your Payroll questions answered by a QuickBooks Product Manager here - intuit.me/31Nl3My
Copper King
Level 1

Buying a used forklift

We are purchasing a used forklift. 

As the value falls well within the annual investment allowance we can record its cost as an expense for tax purposes. My question is, as it's an expense, does that mean it does not go on the balance sheet as an asset (machinery and plant)? 

6 REPLIES 6
V Andrews 205
Level 2

Buying a used forklift

Hi Cooper King

 

Did you ever get a response to this?  I have exactly the same question!

 

I initially recorded it as an expense but instead of using an expenses category I put it against the Asset account so that it showed on the balance sheet.  I'm starting to wonder if it should just be recorded in the Sundry Expenses category for the Self Assessment and then journal it out to the asset account afterwards.

 

 

Copper King
Level 1

Buying a used forklift

Hi,

It turns out you just claim the purchase as a tax deductable expense at your EOY accounts. It is normal for it not so show as an expense in QBO

Ashleigh1
QuickBooks Team

Buying a used forklift

Hello V Andrews 205, thanks for posting on this post, so if you purchase an asset and you use an expense, using an asset account then it will show on the balance sheet. We are not trained accountants just technical support so you should speak to your accountant or there maybe accountants using the community that'll be able to provided you with the correct advise. 

V Andrews 205
Level 2

Buying a used forklift

Thank you for your response.  I've created an expense for the cost of the item and then created a journal entry to add it to the balance sheet.  I will explain all of this when I send my end of year figures to my accountant.  I just want to give him as much information as possible so that he has no excuse to sit on my books for 7 months before looking at anything.  

Copper King
Level 1

Buying a used forklift

Add it as a fixed asset only - not an expense. You write off the value (AIA) on your EOY accounts. It should show as an asset on the B/S, however, its purchase won't be recorded against P&L in QB (The value is deducted against profit on your company tax return w/hmrc only).

V Andrews 205
Level 2

Buying a used forklift

Thank you.  All changed to fixed asset only.  

Need to get in touch?

Contact us