SE Question on software and tax.

chrismac1

Another approach is to have the following capitalisation policy: "All assets costing over £2,000 will be capitalised." I've worked for companies where nothing costing less than £10k was capitalised, so if they challenge this just say "Go and challenge Vodafone then!"

Pennywise

I'd do things properly and claim capital allowances under the capital allowances section. As said above, you may end up with a HMRC jobsworth, which is OK as you can argue with them and prove no tax difference, but why risk the stress and hassle of HMRC enquiry which may well stray into other areas? Again, rightly said above, you may need "accounts" for other purposes and large write offs in the accounts may end up detrimental to you. Just because the tax effect is the same doesn't mean you shouldn't make an effort to put the right figures in the right boxes. For an extra minute or two to put a figure in a different box, it's a no brainer for me.

sunshinetours

I would also use the AIA method for this. New penalty regime is harsher on incorrect returns where errors are made, even potentially where no tax lost by HMRC.