capital or rev?

CHUNKYMONKEY Registered Posts: 29 Regular contributor ⭐
doing accounts for a butchers, can i put small knives, plastic grass etc as expenses or are these capital?
it will take hours to split the bills up if its capital
i've put all big machines,van etc in a pool but other business expenses is down as £1700 including knives etc-would this be acceptable?

also ive got car with 20% so apportioned repairs etc, but what about mileage?
he has wrote list of miles done for business use. can i claim 40p each or is that only if you havent charged for repairs?-business link seems to say one or the other

any help greatfully received, this vat return seems to be taking days!!!


  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
    Personally I would put knives down as revenue items - they don't cost much and they must get through a few a year.

    The 40p/mile covers ALL motor expenses - fuel, repairs, insurance, tax disc, depreciation etc etc - you need to choose one or the other but not a bit of both!

    Hope this helps.

  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    I would agree with Claudia,

    Small items consumed in a year could go into revenue.

    You could also consider a materiality limit for capitalising items such as the plastic grass, even if it is in use for more than a year. I do not know the turnover but £50 might do the trick.

    But if they are start up costs then I would lump them all together, even though there may be quite a few small value items, and capitalise them.

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