li have a new client, who has paid £4500 for one of those Internet franchises. It's not a franchise in the true sense, it's a ready built website, complete with e commerce, e mail addresses, web hosting etc. she gets paid commission for every time somebody clicks through, and buys foods from the main supplier.
She has made losses already, without me adding this expense, which was paid for during February 2012, so just outside the last tax year.
My question, is, how do I treat ths? I've done research, and can't work out if its capital or revenue expense. I suspect capital.
Im assuming that it hasn't already been accounted for, as this is her first tax return.
If I treat it as capital, then I could utilise the AIA, but as she has incurred losses anyway, so surely any advantage would be lost?
If I treat out as revenue expense, then the losses could be brought forward against future profits, although I don't see her making a profit any time soon, certainly not a taxable one.
I'd really appreciate some advice on this, as I don't have much experience with losses.
