PracticeBooksFixed assets and FRCS depreciation
Keep each client’s fixed asset register with the FRCS depreciation rates built in, print the Schedule of Fixed Assets & Depreciation, and post the year’s charge in one journal.
FRCS rates built in
Choose an asset’s category and the rate comes with it. These are the rates PracticeBooks applies, from the Income Tax (Depreciation Rates) Regulations 2016. Buildings use straight line only.
| Category | Diminishing value | Straight line |
|---|---|---|
| Motor vehicles, computers, construction and earthmoving equipment (under 7 t) | 40% | 25% |
| Buses (30+ seats), heavy goods vehicles (7 t+), plant and machinery for farming, mining or manufacturing | 30% | 20% |
| Office furniture and fittings, vessels, aircraft, and any asset not otherwise listed | 20% | 12.5% |
| Buildings — brick, stone or concrete | — | 2.5% |
| Buildings — timber | — | 4% |
| Buildings — steel or prefabricated | — | 4% |
| Buildings — steel, on copra plantations | — | 7% |
| Buildings — bure | — | 15% |
Check the rates against current FRCS guidance for your clients. A different rate or a useful life in years can be set on any asset.
Part years, disposals and salvage
- Straight line or diminishing value, per asset.
- The first year is charged for the months the asset was held up to the year end.
- No deduction is taken in the year of disposal.
- Depreciation stops when the asset is written down to its salvage value.
- Financial years can end in any month.
The schedule and the year-end journal
The Schedule of Fixed Assets & Depreciation shows each asset’s cost brought forward, additions, disposals, accumulated depreciation and written-down value for the year, grouped by category with totals.
Post the year’s depreciation for the whole register as one journal, grouped by account, or asset by asset. Assets already charged for the year are left out, so nothing is charged twice.
More in PracticeBooks
- JournalsRecord, import and correct journal entries, with a full change history and undo.
- Bank reconciliationImport the bank statement, confirm the matches, and finish when the books agree to the bank.
- Financial statements checklistA financial statements checklist per client, bank sign-off that locks the month, and the client's requirements list.
- Financial statementsProfit & Loss and Balance Sheet from the ledger, with comparatives and PDF or CSV downloads.
Bring your practice onto PracticeBooks
Each firm gets its own PracticeBooks organisation. We set it up with an administrator account for your practice; your administrator then adds your staff and client companies. Email us to request access — tell us roughly how many staff and client companies you have.
Or write to [email protected]