Hi - I am a Finance Manager in a Ltd.
We have some cloud based software which we have paid a 10k "access payment" for, and then we have very heavily customised ourselves (because the software was skeletal and is 100% intended to be customised by businessess using it). We have a service agreement which we pay monthly which pays for support, billed by use.
Currently, i am expensing the service agreement costs through the PnL.
The access payment for the initial software and also our time in labour to customise it, i have capitalised on the balance sheet. The project is almost complete and it will start depreciating next month. However, I am unsure if we have classified it correctly.
I am wanting to claim AIA for the project. All costs for it have been within year, it may be cloud based, but it is "ours" with our GDPR data on it. It cannot be "physically" removed from the provider, but we can sell it on as a package to another (provided they also take on the service agreement).
It is the only "tool" of our business and therefore we consider it to be plant/machinery.
On this basis, can the initial costs (paid to the company via invoice) and wages to customise (paid to staff in year) be claimed under AIA?
I have read just about every document HMRC/ACCA have issued on the topic, and it still seems grey... i am comfortable with its capitalisation - it is where we go now..