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Do you (or can you) capitalise software licences

And hardware



9:50 am on May 6, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

Any thoughts on this from those who understand financial and other implications. THis is for Windows, SQL Server, Terminal Services, Visual Studio & Various dev tools like Visio, RedGate. ALso Servers, Drives, RAM, Laptops.

Whats the pros and cons of putting down hw/sw as an asset on the balance sheet ?

Manish Singh

11:27 am on May 8, 2008 (gmt 0)

10+ Year Member

It depends on the tax laws in your country but generally you cannot show software license purchase as capital expense. However hardware purchases can be shown as capital expenses (with few exceptions).


9:20 pm on May 15, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

After talking to several "experts" it seems you can put software as an asset in the UK, even though the licence prohibits resale. No only that but if you deploy a "server" you can put the total cost of the hw, sw, consultancy, build, test, as this would be the cost of replacing the "server" asset...nice ?

What do you think, is this a good idea ? or better to write it off as an expense in a single month ?


9:31 pm on May 15, 2008 (gmt 0)

WebmasterWorld Administrator lifeinasia is a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month

As almost all tax matters, it all depends on your specific situation. For many it will make sense to expense it all at once, whereas others will see more benefit by amortizing it.

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