Self assessment purchase of website

[catherine2255]

Hi,
I'm not sure how to treat this in my self assessment,
I purchased a website for £900, it generated a small amount of income for me in the last tax year, and more this year. I think I will only recover the amount I spent on it and dont think I will be able to sell it on (bad investment).
How do I treat this in my online filing, do I put it down as a cost or do I have to depreciate the cost over each tax year?

Any advice would be welcome.

Thanks

Catherine

[taxattack]

Hi,
I'm not sure how to treat this in my self assessment,
I purchased a website for £900, it generated a small amount of income for me in the last tax year, and more this year. I think I will only recover the amount I spent on it and dont think I will be able to sell it on (bad investment).
How do I treat this in my online filing, do I put it down as a cost or do I have to depreciate the cost over each tax year?

Any advice would be welcome.

Thanks

Catherine

Computer software counts as plant and machinery for capital allowance purposes, and qualifies for the annual investment allowance, assuming it was purchased after April 5th 2008. So it could be claimed in full in the year of purchase. Have you filed your return yet for that year?

Chris

[Jaykay]

The website is an asset and needs to be shown with the other assets like equipment, vehicles etc. However, you can claim 100% Annual Investment Allowance at the moment on assets such as these.

Assuming you are going to declare this on your 2010 tax return, it is shown as AIA like Capital Allowances. If, however, you are lucky enough to sell it then you will have that amount as a profit!

[catherine2255]

Thanks for your help, I am just about to file it, it was purchased in Nov 08, which box do I put it in on the return?

[Homshaw]

http://www.dorwardmedia.com/img/Deduction%20for%20website%20costs.pdf

Bit debate on this one but for most of my clients, that is spending less than the AIA limit, they have more flexibility on their WTC and utilising their personal allowances if they go with HMRC and treat it as capital

[Homshaw]

Having read that again it is suggesting if there is no e-commerce element to it it would be revenue but if it was e-commerce it would be capital but not qualify for Capital Allowances. Need my tax books which are at work

There must also be a question over how much is a shop front and how much is advertising, For example "Keep Britain Tidy" may have a big expensive site and sell a few tee shirt. Can't image it makes the whole site unclaimable