Is there an amount when I should be capitalising assets? For example a drill was purchased for £149.99. Would this be a capital item or an expense? Just trying to get my head round this.
It all ready depends on what is material to the business and how long the item will last.
For some businesses any item over £100 may be capitalised as it is a material amount. For another the cut off may be £500 for others it may be £1k or even more.
Just a case of deciding what level you should capitalise at and over how long you should depreciate so the item is expensed to the p&l
