Set up a Capex register

Overview

The Capex register is used to record the values of capital assets in TaxLab. It supports deferred tax calculations and can be linked to workpapers such as Depreciation, Disposal, and Expenses capitalised for tax.

⚠️ Warning: If you’re using deferred tax in TaxLab, set up your Capex register in the prior tax year to ensure the correct calculation of opening deferred tax.

We recommend:

• Creating only the highest level of Capex detail required for your outputs. Avoid replicating the entire fixed asset register.
• Creating a separate Capex register where the tax accounting treatment differs, for example if an asset class has a different deferred tax treatment. Assets with the same tax and accounting treatment can be included as part of one Capex register.
• Setting up the Capex register in the prior tax year. Deferred tax calculations are based on the closing net book values from the previous year, which become the opening balances in the current year.

Add a Capex register

1. From the entity’s income tax calculation, in the navigation bar select Workpapers > Capex.
2. Select Add register.
3. Enter the Register Code and Register name.
4. Enter the first Section Code and Section name (e.g. Vehicles).
5. Select Save.

ℹ️ Info: You only need to assign a register code and section code if you plan to regularly import updated Capex data.

Add additional sections

ℹ️ Info: Each section in the Capex register will display as a separate line in the deferred tax proof. Only create new sections if absolutely necessary to break down the information contained in the Capex register.

1. In the navigation bar select Workpapers > Capex.
2. Select the relevant register.
3. Select Add section.
4. Enter the Section Code and Section name (e.g. Buildings).
5. Select Save.

Add data

After creating the register and sections, add Capex data.

1. In the navigation bar select Workpapers > Capex.
2. Select the relevant register > Select the relevant section.
3. Under the Cost or Accumulated Depreciation headings, select New. 
   • This is used to add a new opening balance for an asset, add a new asset, a new disposal event, new depreciation, or other item.  
4. Enter the fixed asset Code, Name, and relevant balances.
5. Optional: Add a note, or attach a file.
6. Select Save.

ℹ️ Info: You only need to assign a code if you plan to regularly import updated Capex data.

Sign conventions

• Additions (e.g. capital purchases) are entered as a positive value.
• Accumulated Depreciation and entries that increase accumulated depreciation (e.g. current year depreciation) are entered as negative values.

Tip: Use the ‘Other’ section to add the closing balances when setting up the Capex register in the prior year. 

Link workpapers to a Capex register

Once your Capex register is set up, you can link the following types of workpapers:

• Depreciation
• Disposal
• Expenses capitalised for tax

To link a workpaper:

1. In the navigation bar select Workpapers > Accounts.
2. Locate the relevant account from the Trial balance.
3. Select the workpaper name to open it.
   • If you haven’t already, add the appropriate workpaper to the account. 
4. From the Capex register dropdown, select the appropriate register section.

To unlink a workpaper, select the Unlink workpaper button next to the dropdown.

Unlink a workpaper in the capex register:

1. In the navigation bar select Workpapers > Capex.
2. Select the relevant register > Select the relevant section.
3. Locate the workpaper under the relevant heading. 
4. Select the Settings cog.
5. Select Unlink workpaper.

Edit or delete register data and sections

Edit or delete register data

1. From the entity’s tax year summary, in the navigation bar select Workpapers > Capex.
2. Select the relevant register > Select the relevant section.
3. Locate the entry.
4. Select the Settings cog.
   • To edit: select Edit, make the changes, then select Save.
   • To delete: select Delete.

Edit or delete a section

1. From the entity’s tax year summary, in the navigation bar select Workpapers > Capex.
2. Select the relevant register.
3. Locate the relevant section and select the Settings cog.
   • To edit: select Edit, update details, then select Save.
   • To delete: select Delete.

⚠️ Warning: A Capex register will be permanently deleted from all tax years, including read-only tax years, once all of its sections have been removed.

Troubleshooting

Issue: Capex balances aren't showing

If Capex balances are not showing, the check box to include in deferred tax proof may have been unselected when setting up the register. This will cause the register to not be included in tax calculations.

1. From the entity’s tax year summary, in the navigation bar select Workpapers > Capex.
2. Select the Settings cog next to the relevant register.
3. Check Include this register in tax calculations.

⚠️ Warning: Any balances entered before this setting was enabled will now display. Duplicate entries should be reviewed and deleted if required.