I am Ltd company and work among other things as a trek leader and a mountain bike guide. there are some items that I have purchased and am not sure what to categorise them as, here are some I am struggling with
Replacement buckles for a rucksack
A rucksack itself.
brake pads for the mountain bike
oil and lube for the mountain bike
solar battery charger for use on longer treks
Rope, Slings and Karabiners (legally required to carry them in rucksack when working as an International Mountain Leader)
Office Equipment, or Plant and Machinery seem likely options, but dont quite sit right with me.
I’d probably be inclined to stick them all down as general purchases as they are all small items/consumables.
I’m also interested in clarifying this type of thing.
We regularly purchase equipment and I struggle to decide if it’s general purchases or plant/machinery.
Forgive my naivety, but I assume picking the right category is going to have tax implications?
I am not an accountant so my knowledge on the subject is limited. There are quite a few threads on this matter though and it is one of those ‘ask 5 different accountants and get 5 different answers’ type of thing.
In general the advice I have been given is anything under £3-500 or so is a general purchase. You could categorise everything as a specific asset/consumable etc and assign hundreds of nominals but it’s not always worth the effort and complexity. There are some differences from the tax POV, but I couldn’t really tell you exactly what and how.
There is guidance from the HMRC but this can probably be interpreted in several ways, hence the statement in my first paragraph. A lot of it comes down to how much reporting power you need (e.g. see exactly how much you have spent on office consumables specifically) and how much time you want to spend doing the books (e.g. depreciating all assets accurately).
As always, if you’re unsure, ask your accountant.
Yes, that’s probably the best bet isn’t it…
Now, finding an accountant
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