Equipment or running cost
A laptop lasts for years, a bag of dog treats does not. Tell equipment from running costs and record each in the right place.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1Two kinds of spending3 questions
- Running cost
- something used up in the day to day work, such as treats, insurance or a repair
- Equipment
- something bought to keep and use for more than a year, such as a laptop or a set of dog crates
A repair that keeps equipment working as before is a running cost. Buying the equipment in the first place is not.
Keep a list of equipment with the date, the cost and the receipt. Tax rules treat equipment differently from running costs, and they depend on the basis you use. The rules are on GOV.UK.
Task 2Sorting a month2 questions
Task 3Equipment in double entry4 questions