I am a sole trader and work in software development, I spend quite a bit annually on computer/notebook upgrades or replacements when things fail such as keyboards and so forth. How do I record this expenditure as capital expenditure?

Many thanks, and love the application.

Hi Chris,

(Glad to hear you like our software!)

To record capital expenditure you simply allocate the purchase to an asset account instead of an expense account. So for example you could create a new asset account called 'Computer Equipment' and allocate to this account in the Money Paid Out window.

Each year you should write off a portion of the value of your assets as depreciation - see this page for details:
http://www.solaraccounts.co.uk/help/how-to-record-depreciation-of-an-asset.php

Regards,

Upgrades may be capital expenditure but if no enhancement (i.e. replacing like with like) could be treated as replacements.
Replacements usually Revenue expenditure.
More advantageous for tax to write them off as Revenue expenditure.