Capital of revenue expenditure
Trish
Registered Posts: 20 New contributor 🐸
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
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
0
Comments
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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.0
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£1,000? Well you should have said! :laugh:
Ah well, I clocked up a good CPD cycle!
Regards
Dean0
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