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Defibrillator contract renewal - revenue or capital expenditure?

0 votes
Not quite as straight forward as might first be thought.
Existing defib is contract provision where contract has expired and there is potential for system removal.
Option 1 is renew contract with existing provider and retain existing equipment.
Option 2 is to allow current provider to remove existing equipment and allow contract term to expire.
So, option 1 would likely be revenue expenditure for a contract renewal but option 2 could be either an alternative contract service provider or an outright purchase which could be capital expenditure.
Any thoughts anywhere??
by (3.0k points)

2 Answers

0 votes
How much are we talking about?
by (3.4k points)
I think - no specific details available yet, +/- 2k for a contract renewal retaining existing hardware - I think that is revenue.
Don’t know what new kit purchase would be yet - awaiting some details, ever the optimist.
Does the ££s cost effect whether revenue or capital? I wouldn’t say so according to HMRC Norns but there may be some bizarre PC different way of doing things….
A defib costs about a grand and if placed outdoors, the cabinet would be about £500. Your local ambulance trust might supply them as a package including training. There are many grants available to reduce the costs e.g. the British Heart Foundation, London Hearts (not only London) and Lottery Awards for All and it's a popular item for a public appeal or crowdfunder. We ran a public appeal for a month and raised £2,400 in a community of 700 residents.
Mucho obligato! Will have a look at that.
0 votes
Sounds like a very similar situation my Council has just discussed, we have renewed the contract with the existing provider for four years and it will cost about £500 a year.  They will replace the defib with a newer one, take care of the replacement pads and batteries and also offer a free defib training course to residents once a year.  Grants for new defib are hard to come by especially if you are replacing them and we thought this was the best option.
by (3.1k points)
Thanks for that - offers a comparison. Mucho obligato!

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