Hi again,
Needed guidance in following case
In UK when u buy vehicle even on cash, u must insure it and pay a tax, road tax or first time DVLA tax.
Can we capitalize these cost, including payment for fuel to bring vehicle to premises as directly attributable cost of bringing the asset to the location and condition criteria.
Cheers...
Can we capitalize first time road tax, fuel and insurance when buying vehicle
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- Posts: 39
- Joined: 14 Apr 2019, 04:54
Re: Can we capitalize first time road tax, fuel and insurance when buying vehicle
Hi, I would expense immediately in P/L any recurring taxes/fees and fuel,
and capitalise payments that are made only once on acquisition.
Insurance is a service that you receive (i.e. insurance coverage) , so you can treat it as a prepaid expense
and capitalise payments that are made only once on acquisition.
Insurance is a service that you receive (i.e. insurance coverage) , so you can treat it as a prepaid expense
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- Posts: 39
- Joined: 14 Apr 2019, 04:54
Re: Can we capitalize first time road tax, fuel and insurance when buying vehicle
Thank u so much for guidance. Kind regards