How do I enter purchase of computer software license in Quickfile?

[Samwelly]

I have purchased a license for some computer software. It is a one off purchase (ie not a subscription arrangement). Do I enter purchase in the IT and consumables category?

[Paul_Courtier]

Pretty sure there is a software nominal.

[Samwelly]

I can’t find a “software” category. The only categories I can find are “Intangible asset amortisation”, “Intangible assets” and “Licenses” which might be suitable?

[Paul_Courtier]

No not really. Software renewal in this instance isn’t an asset.

You can always create your own under chart of accounts.

[Samwelly]

Thank you! I will look at how to create my own catagory.

[rhc]

That’s maybe helpful

Adding a new nominal account

Introduction Adding new nominal accounts is a good way to separate out specific income streams and provide more granular categorisation on your outgoings. Be careful not to go over the top creating new nominal accounts, in most cases you can use one of the existing codes. The current presets are based on accepted accounting standards and it is unlikely in most cases that you will need to elaborate further on these. That said, if you wish to add a new nominal account you are able to do so from …

[Mimi]

I would put it under ‘Subscriptions’, would this be wrong?

[Samwelly]

I put it under licenses in the end as it is a software license I purchased.

[Bagpipe]

I would normally create a nominal code called software under a code say 7806. There are instances where licenses are classed as an asset but it depends on the costs involved. Small amounts are revenue and typically written off as an expense and larger amounts can be classed as an asset but it’s unusual.

[jwf]

The question was not strictly about tax considerations but it concerns it so for interest…

Tax treatment of software and website costs | The Association of Taxation...

[Bagpipe]

I did see the link to ATT on google but not the detail. The flowchart is excellent and will use this, so many thanks. I first came across this on a webinar with Mike Steed earlier this year …Website expenditure on active websites is capital in nature (S71,CAA 2001).