Hi. I need to do a DT calculation and cannot remember how to do it, can anyone help please?
I now that it is the difference between the writing down allowances and the capital allowances but how do you bring the disposal of an asset into the calculation.
You know, I haven't done DT in ages! My rusty old brain remembers it as:
(Tax written down value verses net book value) x the rate of tax
So if you had an NBV of £500 on a laptop, and had claimed capital allowances at 100% - the DT would be £500 x 20% = £100 (this because the TWDV would be NIL)
The NBV and WDV would have already taken the disposal into account
-- Edited by FoxAccountancyServices on Wednesday 18th of March 2015 10:58:23 PM
Thanks I will see if I can work back to the figure in the accounts.
Just a further question is it absolutely necessary to include DT in the accounts. We are not talking big figures here and sometimes I see it and sometimes not so I figure that it must be pretty relaxed.
