I have a client who runs a small plumbing business. He’s just purchased a PDA for tracking jobs and quotes etc.It only cost a little over a hundred pounds, do I still need to enter it as a capital asset or can it be just expensed? If expensed, can it just go to the computer expenses code?
In my experience, this is a business decision. Some businesses choose an amount like £100 (what they see as material) to determine the limit of what is expensed and what is capitalised. I personally would capitalise a £100 PDA, as your client will probably benefit from it (use it) for more than one year.
