Is Cost of new/old Mobile phone a capital Expense?

[css_jay99]

Hi, I wanted to know (excluding tarriff plans) if the cost of a brand new phone(from operator) or used(from ebay or shop) is a capital/fixed Asset expenditure or not?.


If It is a capital expense, what are the depreciation and wda rukes

thanks


css_jay99

[sage@reillymcmordie]

is cost of new/old mobile phone a capital expense?

Hi

I'm a newbie to the forum but may be able to help on this one

Normally yes it's a capital expense.

- If cost was below £100 HMRC may allow it as a revenue expense.

- Depreciation rate is a policy decision by the directors

- Bear in mind the writing down allowance may be restricted for private usage

[Nixon Williams]

Hi, I wanted to know (excluding tarriff plans) if the cost of a brand new phone(from operator) or used(from ebay or shop) is a capital/fixed Asset expenditure or not?.


If It is a capital expense, what are the depreciation and wda rukes

thanks


css_jay99

I would agree that technically it is a capital expense, however for small companies they benefit from 100% tax allowances in the first year.

In simple terms this means there is no tax difference as to whether it is treated as capital or revenue.

For small value items, they would tend to be treated as revenue.

Alan

[css_jay99]

I bought the mobile for £200 off ebay and i currently have a simplicity tarrif which is registered to me via my company.

Thats why i was thinking of making the cost of the phone an expense as its way too much hassel depreciating/writing it down ...and then its accounting treatment till it has no value.......



css_jay99