Capital of revenue expenditure

Trish
Trish Registered Posts: 20 New contributor 🐸
in General accounting discussion
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

Comments

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    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
    Dean Registered Posts: 646 Epic contributor 🐘
    £1,000? Well you should have said! :laugh:

    Ah well, I clocked up a good CPD cycle!

    Regards

    Dean
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    Dean wrote: »

    Ah well, I clocked up a good CPD cycle!

    Dean S you have competition for your CPD crown
    :laugh:
  • Dean
    Dean Registered Posts: 646 Epic contributor 🐘
    Poodle wrote: »
    Dean S you have competition for your CPD crown
    :laugh:


    In the words of tv burp..

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

    :thumbup1:

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