I have recently bought a commercial property in TS1, through my limited company. It has been empty for five years but previously used as retail/A1. I have leased the property to a second limited company I own for use as a cafe/A3. The cafe company is doing the conversion and total rennovation.
I have read elswhere that the costs associated with this rennovation should be booked as capital expenses, and that there is an allowance for these - and in particular for rennovation of commerical property in 'deprived' areas, but I am confused as to how I do the book-keeping.
For example, if I buy a £500 boiler and have a receipt for it, it is clear this is a capital expense that I can book in Freeagent (the book-keeping software I am using) as having an x-year 'life'. However, if I also have another receipt showing £200 of 'bits' from Screwfix, such as screws, glue, spanners etc. that I will use to fit or carry-out the work, what should I book this as?