I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Thanks for the quick response. I don't think that is enough for me to go on, so have followups if that's OK.
On what basis have you chosen revenue over capital? What is the main criteria i need to consider when reviewing the costs? When you say you would be "tempted" to treat these costs as property repairs, does this mean HMRC would maybe have a different view?
Nicole, thank you for your reply.If you were for example replacing all windows instead of one or two, the expenditure would be regarded as capital.HMRC would also apply the reasonableness test. I would regard these as revenue based on experience and nature of expense.the criteria for deciding whether it is capital or revenue is the nature of expense and amounts involved. HMRC are happy to let costs of under £750 be regarded as revenue expense and one could quite easily spend this sort of money on painting and minor repairs. Extensive alterations to a building would be deemed capital.More information on this can be found here
I hope this is helpful..
OK thanks, ***** ***** sense. Maybe I should have provided the amounts then. The spend here was quite high as it is an upmarket London address with an excellent finish required -> £10k split roughly £5k materials and £5k labour (to cover the parquet flooring, paint walls of office/meeting rooms/kitchen/b/room and removal of a wall of filing cabinets in a meeting room).
Should have specified amounts upfront, apologies.
Does this change your opinion at all even though the nature of the expenditure is the same?
If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.
Hi, thanks for your advice. Just to let you know the reason I gave good instead of excellent service as a rating is that the initial response was very brief and I had to take some time to work out exactly what I needed clarification on and why (which I wasn't completely sure of!). Would have been useful to have been driven a bit more from your end based on the key points to consider. All the best and thanks again.