These expenses are then depreciated over the useful life of the asset
These expenses are added to the balance sheet, rather than the profit and loss.
They are usually for plant and machinery such as computers, phones, office equipment. A good rule of thumb is to consider capitalising the expense only if it is over £100
Capital allowances can be claimed on many capitalised transactions.
Revenue Expenditure
These are short term expenses that are typically to be used or the benefits received within 1 year of purchase.
They are the running costs of the business and therefore the vast majority of expenses for most businesses will be revenue expenditure.
