How to treat software development cost?

Didn't find your answer?

Hi all, One of our limited company client has incurred software development cost of £4,000.  How should this be treated in the accounts and capital allowances due on these costs?

Replies (4)

Please login or register to join the discussion.

avatar
By David Ex
07th Nov 2022 14:38

Think there are various accounting standards that may guide you.

https://www.accaglobal.com/us/en/technical-activities/technical-resource...

Thanks (0)
avatar
By carnmores
07th Nov 2022 14:59

does it work do they use it ? fancy claiming R&D?

personally, if it works I would capitalise it, might it be saleable?

Thanks (0)
avatar
By Paul Crowley
07th Nov 2022 15:03

Did they pay a supplier to do do it, or are those internal wages.

Thanks (0)
Replying to Paul Crowley:
avatar
By [email protected]
07th Nov 2022 16:20

Hi Paul
They paid supplier to do it.

Thanks (0)