Start with a complete asset register
Record description, supplier invoice, acquisition date, date available for use, location, responsible person and cost. Separate recoverable VAT from the cost where appropriate. Distinguish land, buildings, equipment and intangible assets instead of using one rate for every purchase.
A repair and an improvement can have different treatment. Document what the expenditure actually achieved. The invoice wording alone may be insufficient, particularly for property refurbishment or bundled software and implementation costs.
Prepare the tax reconciliation
The accounts charge depreciation according to their accounting policies. In the tax computation, identify the relevant depreciation adjustment and claim only the allowances supported by the tax rules. Maintain opening tax values, qualifying additions, allowances, disposals and closing values.
For a calculation illustration only, assume an eligible €10,000 asset attracts a verified 10% annual allowance for the relevant circumstances. The allowance would be €1,000. If accounting depreciation is €2,000, the computation generally adds back that depreciation and deducts the €1,000 tax allowance. The assumed rate is not a rate recommendation for a particular asset.
Check special rules before claiming
Review the statutory asset class, business-use restrictions, timing and any temporary accelerated provisions. Passenger cars, land, intellectual property and energy-related investment must not be treated as interchangeable equipment.
Where an asset serves both business and private purposes, document the basis of the claimed business portion. Keep evidence for the rate used, including the relevant year’s provision. A rate copied from an old spreadsheet can remain wrong for years.
Reconcile disposals and year-end balances
Record sale proceeds, scrapping evidence or other disposal documentation. Review whether a balancing adjustment arises under the applicable rules rather than simply deleting the asset from the schedule. Reconcile closing cost and depreciation to the ledger.
Use the fixed-asset register guide for the underlying records and include the tax schedule in the year-end evidence pack. Differences between accounting and tax values should remain explainable.