Letters - Back to basics.
I wrote to you a short while ago about your excellent publication and in particular the ‘week in the life of’. You’ve done it again! I see that PricewaterhouseCoopers’ Peter Holgate spent most of Friday agonising over the accounting principles for capitalisation (or not) of £1,500 software in his wife’s medical practice assets (p26, 14 June). On the assumption that the calculations are only being prepared for the taxman does he not know that if it is revenue expenditure it will be allowed as a 100% expensed item, and as capital expenditure it will be the subject of a 100% writing down allowance? The net difference to the taxable profit £nil! Perhaps it was not the best use of his professional time, and I bet that his charge out rate is significantly higher than mine.
Martin Pell, Nottingham Democracy in action.