Capital of revenue expenditure

Trish

Many thanks to all members who have replied to my thread.

The cost of the new flat roof was just in excess of £1000. It did have an element of improval over the old one in that they used fibreglass instead of felt and bitumen.

The client was insistent that it was cap.ex. but my gut instinct was that it was revenue expenditure. After reading through your replies I am inclined to go with my gut instinct.

Thanks again for your help.

Regards Trish

deanshepherd

If your client wants to capitalise it then I would be inclined to do so. No-one is going to bat an eyelid over £1,000. HMRC would usually want to argue for capital treatment rather than revenue.

Dean

£1,000? Well you should have said! :laugh:

Ah well, I clocked up a good CPD cycle!

Regards

Dean

Poodle

Dean wrote: »

Ah well, I clocked up a good CPD cycle!

Dean S you have competition for your CPD crown
:laugh:

Dean

Poodle wrote: »

Dean S you have competition for your CPD crown
:laugh:

In the words of tv burp..

....."FIGHT".....

:thumbup1: