Are you allowed to accrue an uninvoiced cost of a tangible fixed asset?
Here is the scenario:
Suppose you've been quoted £10K from a supplier for website development over a 3 month period. 30% was invoiced and paid upfront before any work commenced. The development did not go according to plan and by the end of the year (12 months later), development work was only 70% complete. No invoice has been issued for the remainder of this work completed.
Is one allowed to accrue the additional 40% cost of this fixed asset (given the current working state of the website) which will also allow the company to claim a higher capital allowance in the first year due to AIA?
At what stage does one start depreciating the asset? Only following 100% completion? If that is the case, can you only claim AIA at this stage?
Thanks for your input.
- Professional coaching claimable? 67 1
- Sage instant account codes 113 1
- Networking 122 1
- What VAT to reclaim on van purchased on HP? 264 4
- Mobile phones, directors of micro-companies 165 1
- Turnover on a tax return 293 8
- incorrect old p60 448 11
- Cashflow forecasting software 302 4
- Letter to HMRC over 3 months ago, still no reply 1,931 19
- Companies House paper incorporation - date of birth omission 284 4
- US company hiring UK citizens in UK 247 3
- VAT refund 177 1
- Is there an AIA calculator anywhere 257 1
- Reclaiming VAT on refurbishment cost? 268 3
- Missing tax return 392 4
- Are you going to Tick and Bash on 21 May? 1,127 30
- Inflation and fees 1,408 24
- Sage Priority Support 192 3
- Cost of demolition of a shed - revenue or capital? 846 24
- Micro-entity accounts 309 1