Assets are resources owned or controlled by a business or individual that have economic value and are expected to provide future benefit, such as cash, property, equipment, stock or receivables. For accounting purposes, they are typically classified on the balance sheet as either current assets (held short-term) or non-current/fixed assets (held long-term).
What the Assets area is for
The Assets area in TaxOptimiser is where you record items your business or rental property owns and uses over the longer term, rather than everyday running costs. Things like vehicles, computers, tools, machinery, office furniture and equipment used in a furnished holiday let or rental property all belong here.
Keeping your assets recorded in one place helps TaxOptimiser work out the correct tax treatment, claim any available allowances, and produce accurate accounts at the end of your reporting period.
Heads up - Assets are different from general expenses. If something is expected to be used in the business for more than one accounting period, it should usually be entered as an asset rather than an expense.
Who should use this area
The Assets area is relevant if you are a:
- Sole trader buying equipment, tools or vehicles for your trade
- Landlord purchasing items for a rental property or furnished holiday let
- Small business owner investing in machinery, fixtures or fittings
- Accountant managing client records and capital allowances claims
Adding a new asset
To record an asset in TaxOptimiser:
- Open the Assets section from the main menu.
- Select Add asset.
- Enter a clear description so you can identify the item later.
- Choose the asset category that best matches the item.
- Enter the purchase date and the amount paid.
- Select the business or property the asset belongs to, if you manage more than one.
- Indicate the proportion of business use, if the asset is also used personally.
- Upload a copy of the invoice or receipt to keep your records complete.
- Save the entry.
Choosing the right category
Categories help TaxOptimiser apply the correct tax treatment. Common categories include vehicles, plant and machinery, fixtures and fittings, computer equipment and integral features. If you are unsure which category to choose, check the description shown next to each option, or speak to your accountant.
Recording private use
If an asset is used partly for personal reasons, you should record the business use percentage when adding it. TaxOptimiser will adjust any allowance claim accordingly so that only the business portion is included in your tax calculation.
Common examples include:
- A car used for both business journeys and personal trips
- A laptop used for work and family use
- A mobile phone shared between business and personal calls
Editing or removing an asset
You can update an asset at any time if details change or you spot an error:
- Go to the Assets list.
- Select the asset you want to amend.
- Choose Edit to update the details, or Delete to remove the record.
- Save your changes.
Heads up - Deleting an asset removes it from your records permanently and may affect previous calculations. If the asset has already been included in a submitted return, edit the record rather than deleting it, and add a note explaining the change.
How assets affect your tax calculation
Assets are not deducted in the same way as everyday expenses. Instead, TaxOptimiser uses the information you enter to apply the appropriate capital allowances against your taxable profits, taking into account the category, business use percentage and disposal details.
You can review the effect on your figures in the relevant tax calculation or report screen. If you work with an accountant, they can check the treatment before you submit anything to HMRC.