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Are Venetian blinds Capital Expenditure?

Are Venetian blinds considered to be standard Fixed Assets or Capital Expenditure?

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Are Venetian blinds considered a standard fixed asset purchase? or capital expenditure? There have been no other improvements in the rooms. Each blind cost £400.

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By atleastisoundknowledgable...
07th Jan 2020 07:51

I think you mean ‘fixed assets or revenue expenditure’.

Depends, but I’d prob not capitalise.

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By paul.benny
07th Jan 2020 08:03

Fixed assets is the balance sheet line where you report capital expenditure.

Are you trying to ask whether the blinds should be capitalised? Or whether they are eligible for capital allowances?

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Replying to paul.benny:
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By Daybooks
07th Jan 2020 09:02

Yes should the blinds be capitalised?

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Replying to Daybooks:
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By JoF
07th Jan 2020 09:11

What are your thoughts and why?

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Replying to Daybooks:
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By paul.benny
07th Jan 2020 11:06

If you don't already have a policy, it's a question of judgement.

If you're BP and it's one blind, I wouldn't capitalise - but I might if it was several hundred at £400 each on their headquarters building.

For a corner shop, I probably still wouldn't capitalise just one but might if there were several blinds.

Exercise of judgement is an important professional skill. A good way to learn that is to make *and justify* your own assessment and then to check that with others. Just asking for an answer doesn't develop understanding.

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By Tax Dragon
07th Jan 2020 08:57

Capital for tax, sounds like, but the answer for the accounts may well depend on policy. The person that knows the policy for the client might be the accountant. So that's the person to ask, I would think.

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Replying to Tax Dragon:
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By JoF
07th Jan 2020 09:12

Quite

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Replying to Tax Dragon:
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By Daybooks
07th Jan 2020 17:39

Thanks. I will get it checked with the accountant, was just trying to figure it out for myself so there's less work for them to do.

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Replying to Daybooks:
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By Tax Dragon
07th Jan 2020 22:29

It's less work if you are consistent with the policy (which we don't know) or with the accountant's judgment. Which means working with the accountant. Which means talking to him or her.

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RLI
By lionofludesch
07th Jan 2020 09:44

£400 is borderline for me.

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Replying to lionofludesch:
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By Tax Dragon
07th Jan 2020 10:29

You'd do it per blind?

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Replying to Tax Dragon:
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By Daybooks
07th Jan 2020 17:41

Yes but only because they were purchased separately so have separate invoices.

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By Justin Bryant
07th Jan 2020 10:10

I guess it's just a shade too much.

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By The Dullard
07th Jan 2020 10:19

The one-eyed man is king!

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By Accountant A
07th Jan 2020 11:34

When I was training, we were always taught venetian blinds - capital, vertical blinds - fixed assets.

Hope that helps.

Obviously, a venetian blind retailer would be different.

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Replying to Accountant A:
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By whitevanman
07th Jan 2020 11:41

As would a blind,Venetian, retailer.

Even when vertical!

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By Justin Bryant
07th Jan 2020 11:57

Pool the other one?

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Replying to Justin Bryant:
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By whitevanman
07th Jan 2020 12:10

Venetians and pooling, not a good mix at the moment.

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By The Dullard
07th Jan 2020 12:07

The OP was, I think, hoping that people would throw a little light on this.

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By Justin Bryant
07th Jan 2020 12:17

The answer should have been blindingly obvious I suppose.

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By Tax Dragon
07th Jan 2020 12:28

Eek.
Eek.
Eeek.

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Replying to Tax Dragon:
Hallerud at Easter
By DJKL
07th Jan 2020 13:11

See how they run.

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