extension - how to account for it

extension - how to account for it

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We're having an extension built this winter and the builder will give me his monthly bill for work to date, plus VAT. We operate as a limited company registered for VAT. How should I enter his bills into Sage Instant Accounts? I'm going to guess I cannot just expense them, that there is some capital asset element to it?

I am also getting small bills, £2-£3k from the architects and so forth, can I just expense these or should they be rolled into the capital asset that the extension represents?

Cheers for any help,

Simon
simon maufe

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By User deleted
24th Nov 2006 06:52

Who owns the property?
If the company owns the property, the extension will be an addition to fixed assets. If you own the property privately, this may be a whole different ball game.

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By AnonymousUser
23rd Nov 2006 14:14

My Advice......
Would be to allocate ALL expenses to one place ie. Fixed assets.......

When you then come to preparing end of year accounts for the B&B sit down with your accountant and try and allocate as best you can between property improvements and fixtures and fittings.........

You will get capital allowances on fixtures and fittings but not on property improvements.

What figures can be used as fixtures and improvements is a bit of a grey area and can be open to debate so good luck.

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