Company web site - an asset?

[oxtailsoup]

I spent a lot of money on my company web site and my accountant has recorded it as an asset of the company so I don't get any tax relief for the cost.

I am really surprised as I fail to see how it is an asset if the company can't sell it on for any value. Is this correct?

[Lucifer Box]

It's YourCo, you call the shots. Tell your accountant how you want it accounted for. After all, it's you that takes the rap from Mr Taxman if you're wrong, not him/her.

[oxtailsoup]

I was hoping for accountancy advice. I don't want to go against the accountant if I'm wrong and he's right. Can anyone shed any light on this.

[Fleetwood]

Assets are depreciated over time leading to "losses" which reduce the profit of the business and therefore its tax liabilities.

If you buy some kit for say two grand, which three years later is worth say £200 cos it's so out of date, you can set the loss in value of £600 a year against tax.

[nobody here but us chicke]

web site

well I would tell him to do it as you want it.

When you say you spent a lot of money on your web site, how ?

Was it buying servers, network kit etc ? Those are assets.

domain name ? Well thats a licence fee more or less

web site development - thats consultancy/development fees from the company that developed it.

Un less you have some wonderful web business that actually gives a value to the site above and beyond your costs, in which case I guess there are issues about it having an asset or goodwill value, but I would be surprised.

ianaa / ymmv

[oxtailsoup]

I paid £2200 for the web site to be created. It is purely for the software development.

I understand about assets and depreciation but I just don't understand why this particular cost has been deemed an asset.

[DaveB]

I paid £2200 for the web site to be created. It is purely for the software development.

I understand about assets and depreciation but I just don't understand why this particular cost has been deemed an asset.

Then ask your accountant why he classed it as such. If you dont agree tell him to change it and if you get no luck change your accountant.

[Lucifer Box]

I paid £2200 for the web site to be created. It is purely for the software development.

I understand about assets and depreciation but I just don't understand why this particular cost has been deemed an asset.

Do you mind posting a link to your site? I'd like to see it as £2,200 sounds like you have quite a swish site.

I repeat my earlier advice though. You're running the company, not your accountant, so you call the shots as to how things are ultimately accounted for. Ask him to explain why he thinks it's an asset and if you disagree tell him why and tell him how you want it accounted for instead.

If he won't do that, it's time to remind him that as you are his client, it's your way or the highway.

[The Lone Gunman]

I paid £2200 for the web site to be created. It is purely for the software development.

I understand about assets and depreciation but I just don't understand why this particular cost has been deemed an asset.

Must be some site. I knock em out at 10 quid a page assuming no tricky graphics or embedded scripting to do. Price goes up accordingly.

[oxtailsoup]

It is a swish (or should I say Flash) site. You want a link.... no chance!

I only splashed the cash because I thought it was tax deductible.

Lucifer I understand your comments but I'm no accountant, thats why I pay for one. Its not up to me to tell them what to do until I am sure I may have a fair point..... which I now think I have! But until I posted this message I wasn't sure if I may be totally wrong.