Claiming Website Development Costs

There is a distinction between what is an asset and what is an expense when it comes to your business website. The costs of obtaining the domain name and the initial build of the website are an asset – so can’t be claimed fully in the year that the costs were incurred. There is depreciation claimable on the website meaning the tax expense claims get spread out over a few years. Any on-going costs associated with maintaining or adding information to the website are deductible. However, reconstruction, functional improvement or upgrading of the website would be regarded as capital (asset) and be depreciated over a few years.

To help us make the correct claims when preparing your accounts please make comments next to your transactions if you are incurring these type of expenses to enable the distinction between asset and expense.