Is software an expense or a capital allowance?

[glippiglop]

I would always treat software as capital by default... think about it, if you buy software in a box and can on-sell it, it's definitely capital.

However there are always going to be exceptions, e.g. subscribing to software as a service is an ongoing expense.

There is no absolute rule of thumb here - that's why you're getting different answers and need to work it out for yourself.

[xoggoth]

Can't imagine the IR challenging allocation totalling £200.

[glippiglop]

Hmmm....

Back in New Zealand, anything under $200 (that's only 80 GBP mind) can be treated as an expense regardless of what it is - you can also claim back the sales tax and you don't need a receipt as evidence. If the value of an item depreciates under $200 you can also write it off.

Can anyone tell me if there's a similar level of leniency in the UK? What are the thresholds?