SB Printer -asset or expense?

edited 30 November -1 at 1:00AM in Small Biz MoneySaving
6 replies 1.3K views
daisydaisy_3daisydaisy_3 Forumite
6 Posts
edited 30 November -1 at 1:00AM in Small Biz MoneySaving
Hi all,
Does ayone know if a printer/fax/copier bought for business use at a cost of £300 will go in the books as an expense or an asset?
I am really not sure where to enter this.If its an asset then can you claim capital allowance on it?
Hope someone can help!!!!

Replies

  • I would have posted it as an asset:0
  • lellielellie Forumite
    1.5K Posts
    I'd probably say an asset as it will help you to develop your business.. hmm..
  • i think its an asset as you will be using it for over 3yrs, (i think anything that is life of less than 3yrs is treated differently) but i think this counts as an asset and you can do a writing down allowance, i think its 25 % of the total in year 1, 25% of the remainder in year 2, 25% of the remainder of the balance from year 2 in year3 etc etc. (i would check this out with inland revenue re exact percetnage but is either 20 or 25%)
    I love saving money
  • paylesspayless Forumite
    6.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    IMO Capital expenditure

    Believe for small business its 50% FYA ( first year allowance ?) if purchased before 31/3/05
    ( was 100% on certain IT stuff before 31/3/04)

    OR 40% for purcahses after that date ( might have changed in budget ?)

    then 25% WDA of the reducing balance
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • WHAWHA Forumite
    1.4K Posts
    If the £300 spent on this equipment is "a big deal" compared to your other transactions, i.e. your business is relatively small, then, yes, it is capital.

    BUT, if this amount is insignificant compared with the other expenditure and the amount you have already spent on other items of equipment, you could simply treat it as an expense and claim 100% tax relief in the year of purchase.

    The Inland Revenue don't have any fixed monetary value on whether something is an expense or capital - it tends to be judged on the "big picture" and they won't really be interested either way if this item is insignificant.

    Though as you've asked this question, it does tend to suggest that this is "important" to your business, so I would suggest you treat it as capital. The previous reply about the 50% first year allowance is correct.
  • Thanks for replies all,am going to post it as an asset and mark it down over 5 years(if it lasts that long!!!)..............next time will post small purchases like this as an expense to get 100%tax relief!!
    Thanks for helping.
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