Question regarding treatment of asset purchases

MooreAccountsMooreAccounts Posts: 14MAAT, AAT Licensed Accountant
Hi all,

I'm new to the forum - hope you can help!

I have a client who runs a chain of personal fitness gyms across London. He's been trading for just over a year but has not been keeping accounts - this is where I come in.

He's bought perhaps £2-3k worth of small value weights equipment - dumbbells, barbells, weight mats, kettle bells - but through small vendors at £30-40 a pop. I believe them to be fixed assets as their useful life will be more than one year, but given the low the value of the individual items, can they be classed as such? Or is it worth grouping all asset purchases over the period into VAT-reclaimable and VAT nonreclaimable and entering as two single transactions in the period?

Be great to know your thoughts!

Cheers,
Steve

Best Answers

Sign In or Register to comment.