I just registered your software. Many Thanks its great.

Would this cost go in my software as an expense or an asset?
I also just brought a computer pen drive would this be an asset or expense aswell?

Many Thanks

Hi Trevor,

Thanks for your purchase - glad you like the software!

I am not an expert on this question, but it seems that in both cases the benefit to the business would last several years, and so they should be recorded as an asset. You may find this discussion useful:
http://www.ukbusinessforums.co.uk/forums/showthread.php?t=33804

You may want to check this with your local tax office.

As Mark says any purchase for your business, the benefit of which lasts more than one year, is a fixed asset.
However in practice you could end up with many very small assets all of which may be eligible for capital allowances. This will cost you time to administer and fees from your accountant at tax return time.
Two pragmatic solutions.
1. Lump all small assets into one category called "Assets under £100" and treat them as one Fixed Asset, or
2. Set a "de minimus" limit of say £100 and treat all purchases under your limit as consumables, such as stationery or computer repairs.
Jonathan H