I have an invoice for a new vehicle, which includes plylining and delivery etc, should I include the initial road tax as part of the cost of the asset or should I treat it as revenue expenditure?
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Cost
I might disagree with Gem7321 here.
If the road tax had to be purchased for it to be delivered to the customer, then I would have thought it would form part of the cost of the car.
If however, the new car was delivered to the client, and the client and went and bought the road tax himself separately then it is an expense.
Another vote for revenue
What's the period covered by the road tax payment? 12 months? And what's the useful economic life of the car?
Depreciation
What's the period covered by the road tax payment? 12 months? And what's the useful economic life of the car?
Presumably the VED element will be depreciated separately at a rate of 100% per annum.