Reply to: Company web site - an asset?

[The Master]

Will you get your money back through people seeing your site and saying "that's the chappy - hire him immediately!!"

Not very likely given that he won't let anyone see it.

[cojak]

I'm very happy to know I've saved £2000 on my website (actually it's cost me 40 quid for some good books and my usual domain & hosting costs).

Not only is it not tax deductible, have you done any ROI calcs? Will you get your money back through people seeing your site and saying "that's the chappy - hire him immediately!!".

I had to have one but I'll wait till my company grows ala privateeye before spending that kind of dosh.

[xoggoth]

Fleetwood is correct as I understand it. A website designed to bring in business is capital (as is most software if not an upgrade) and you can recover the money through capital allowances.

[Lucifer Box]

What are the criteria?
What is the criterion?

Take your pick, but never mix.

[oxtailsoup]

FYI

UITF Abstract 29 - Website Development Costs

http://www.financial-reporting.gov.u...D%20ASSETS.pdf

"The consensus in the UITF is that website planning costs should be expensed as incurred, but that other website development costs should be capitalised where they meet the criteria for recognition as an asset."

What is the criteria I wonder?

[Gunnery Sergeant Hartman]

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

And you want free advice? No chance!

[contractor2006]

FYI

UITF Abstract 29 - Website Development Costs

http://www.financial-reporting.gov.u...D%20ASSETS.pdf

[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.

[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.

[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.

[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.

[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.

[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

[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.

[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.