Rent in advance of move date - expense?

Rent in advance of move date - expense?

Didn't find your answer?

We are moving to a new office in January 2020 although have signed the lease which is dated 01/11/19 hence we have been charged rent from 01/11/19

Should this be expensed now inline with the accruals concept? I fear this is so.

Or could we charge to the balance sheet and expense once we are moved in (as we would start depreciaton on the fit out etc. from the move in date).

Thanks

 

Replies (4)

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By paul.benny
13th Nov 2019 19:30

Perhaps Parkinson UK can help when they prepare your next accounts?

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By PChapman
14th Nov 2019 11:45

You have use of the premesis from the lease date
Presumably you are sending contractors in prior to the moving in date to "Fit out"

So you are paying a monthly fee for a montly benefit

On what basis do you believe that you can put these costs on to the balance sheet?

Also depending on the size of your business, you'll need to account for the lease under FRS105, FRS102 or IFRS16 as appropriate

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RLI
By lionofludesch
14th Nov 2019 17:31

Is there something preventing taxpayers having more than one office ?

I missed that provision.

If we're talking Balance Sheets, when's the year end ?

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