Businesses should also be aware that any interest on hire purchase items is classed as a revenue (trading) expense and not part of the capital expenditure and cannot be claimed back with full expensing. Why was full expensing introduced?
(There are strict criteria around what is classed as a dormant asset, and the rightful owner of the funds is free to claim it at any time. See more at the end of this article). When it was first launched, the Scheme allowed banks and building societies to move dormant bank accounts in...
Tax advantages: Seller financing is classed as an instalment sale. The seller only pays capital gains tax on the instalments they receive in each tax year, allowing them to spread the tax burden over the term of the contract.Cons Missed opportunities: Because the seller does not receive all ...
A non-performing asset is a type of loan that has passed the 90 day mark without any payments made on the outstanding balance...
Unlike an SMA, an MDA is classed as a service agreement rather than a financial product, with the planner authorised to provide both advice and discretionary investment management within parameters agreed to by the client. An MDA licence can be attached to the dealer group’s licence. Advisers ...
What is classed as a capital gain? A capital gain is the money made by a business whenever it sells or disposes of a business asset. The asset may be sold in whole or in part. If the business makes a profit from disposing of the asset, this is classed as a capital gain and is th...
Although marked down as long-term assets, an asset’s useful life is usually within the first year of purchase. From then on, as wear and tear begin to take hold, an asset will depreciate in value. But that’s where the tools of an asset management system can be effective....
Functional failureis the failure of an asset, system, or process to fulfill one or more of its intended functions. While the asset may still operate in some form, it is classed as a failure if it does not contribute to operations as intended. Clearly outlining each of the potential points...
Functional failureis the failure of an asset, system, or process to fulfill one or more of its intended functions. While the asset may still operate in some form, it is classed as a failure if it does not contribute to operations as intended. Clearly outlining each of the potential points...
However, upgrades or improvements to existing assets are classed as capital investments because they contribute to the improvement of the business. As we can see, capital expenses are multifaceted and can help improve your business in a number of ways. This is why it’s important to ensure ...