website development fees

website development fees

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hello.
Thinking of developing our website and we've engaged a company to help with google listings etc.. The actual site won't change at the front - but the pages will be re-written "underneath".
Would you capitalise this expense?
Thanks very much.

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By petersaxton
29th Mar 2011 10:43

Not unless you present compelling reasons to capitalise marketing expenses.

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By Fmaat
29th Mar 2011 18:30

Capital v Revenue

This is HMRC's view on software licenses "Where a lump sum payment is made for the acquisition of a software licence, it will be accepted for tax purposes that the expenditure is revenue where the useful economic life of the software is expected to be less than two years. Where the expected useful economic life of the software is longer the correct tax treatment will depend on the circumstances,"

Presumably we can assume where the useful economic life of a website (Which is not software but includes software I think!) is longer; then you could have circumstances where the cost is not revenue but is capital

 

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By Whinger
29th Mar 2011 18:44

.

Thank you very much. 

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