UK Question of assets


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Hi

I’m a professional artist and I like to do my own accounts (partly because I actually like using Excel believe it or not).

My question: how should I handle art equipment? Some of it gets used up (e.g. paint) but the total value of it all at any given time remains roughly constant as I restock. Some items last much longer than paint (palette knives etc) or forever (big studio easels). There may be a slight drift upward in total value as I accumulate more stuff over time.

I don’t really want to have to keep track of every item and depreciate things at different rates etc (it’s arduous enough keeping track of paintings) and yet I do want the equipment represented in my assets somehow.

Do I just include an estimate of the total value and occasionally assess it and adjust if I think it’s changed?

Thanks in advance for the advice

Benjamin
 
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Becky

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Welcome to the forum! :)

Are you self-employed? Paint, brushes, knives etc are consumable items, you don't need to capitalise them. Check out this guidance:
https://www.gov.uk/government/publications/capital-allowances-and-balancing-charges-hs252-self-assessment-helpsheet/hs252-capital-allowances-and-balancing-charges-2018

Check out the section on 'pools' - you don't need to keep track of each capital asset. Also don't confuse the item's actual market value for its 'book value'.

It's also worth bearing in mind that creators of literary or artistic works are eligible to average their profits over two years. It means that if you have fluctuating profits it helps even things out for tax purposes:
https://www.gov.uk/government/publications/averaging-for-creators-of-literary-or-artistic-works-hs234-self-assessment-helpsheet/hs234-averaging-for-creators-of-literary-or-artistic-works-2018
 
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Yes—self-employed.

Many thanks for the links. I shall study them.
 

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