Defibrillator contract renewal - revenue or capital expenditure?

Question

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??

Answer 1

How much are we talking about?

Comments

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….

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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.

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Mucho obligato! Will have a look at that.

Answer 2

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.

Comments

Thanks for that - offers a comparison. Mucho obligato!