Web wonder

My client recently commenced self-employment and has paid a designer to prepare a website advertising the business's goods and services.

There has been a one-off cost for the original design and my client is paying a monthly fee to maintain and update the site.

I am a little unsure as to the capital/revenue split and whether any tax relief attaches to these expenses.

Readers' views on preparing the tax computation would be welcome.

Query 17 151– Duck Feet.

Reply by Bramble

A good starting point is HMRC's Business Income Manual at paragraph BIM35870. This says that the costs of creating the website are capital on the basis that they are incurred in bringing into existence an asset of enduring benefit to the trade.

Depending on the expected lifetime of the website this may not always be the case since a...