Buying a new Laptop as business expense Buying a new Laptop as business expense
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  1. #1

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    Default Buying a new Laptop as business expense

    Hi everyone,

    I am working as an IT contractor for a client that provides me with IT equipment (it's a financial institution, therefore security is paramount).

    I would like to buy a new laptop, expense and reclaim VAT on it.

    This laptop will be used mostly at home for coding, training and accounts work, but obviously also for personal stuff (films, music, browsing).

    Most of the software installed on it will be software engineering related, though. The work on the laptop will not involve any work for my client.

    I am fully aware that strictly speaking I should probably not expense this purchase, but in reality how likely am I to encounter problems with HMRC in regards to this?

    Thanks!

  2. #2

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    GhostofTarbera's Avatar
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    Your client has nothing to do with what you buy a laptop for. Not sure why you even mention your client in this context

    You are an IT contractor, a laptop is a requirement for your own business - end of.

    Anyhoo

    If going high spec push it over the £2K and reclaim the VAT if on flat rate scheme

  3. #3

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    Do you have an accountant?

    https://www.google.co.uk/search?q=la...obile&ie=UTF-8

    And no you won't have a problem as an IT contractor explaining to HMRC why you need a laptop.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

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    You're an IT contractor. You might not need a laptop for this contract but you may well do for another, plus for using at home on side projects to help you keep up your skills. Can't ever imagine a tax inspector questioning a claim for a laptop for a software developer (or anyone in IT really). Stop overthinking it.

  5. #5

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    As long as you are running a Limited Company, and you purchase the Laptop through the Limited Company, and the invoice is in the name of the Limited Company, there will be no issue. If you are on the Flat Rate VAT Scheme, in order to claim the VAT back, the Laptop needs to have an invoiced value of at least £2000, over and above the first sentence.
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

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    If you don't want the hassle of setting up a business account with the laptop supplier you can purchase privately and transfer to the Ltd claiming the amount as an expense.

    If need to worry about the £2k threshold for flat rate VAT reclaiming, consider purchasing additional items at same time if you don't need or want a laptop costing that amount. There's almost an endless number of add-ons some companies will offer when purchasing a laptop, some you might actually need. Laptop bag, docking station, separate mouse, additional monitor, .... easy to spend £2k if need more than just the laptop itself.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

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    Quote Originally Posted by Hobosapien View Post
    If you don't want the hassle of setting up a business account with the laptop supplier you can purchase privately and transfer to the Ltd claiming the amount as an expense.
    You won't be able to recover the VAT if you do that as OP is not personally VAT registered. OP could *pay* for it personally and recover the money from the business (i.e. treat it like a loan) but you'd still need to make it clear that the purchase is on behalf of the company and get a valid VAT invoice in the company name so it doesn't really gain you anything. Much simpler to just buy it through the business in the first place.

  8. #8

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    Quote Originally Posted by Hobosapien View Post
    If you don't want the hassle of setting up a business account with the laptop supplier blah blah blah
    then use the company debit card......
    See You Next Tuesday

  9. #9

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    Quote Originally Posted by northernladuk View Post
    And no you won't have a problem as an IT contractor explaining to HMRC why you need a laptop.
    During my IR35 investigation they asked that very question. Maybe they were stuck in the dark ages when books were all done by hand

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    Quote Originally Posted by Batcher View Post
    During my IR35 investigation they asked that very question. Maybe they were stuck in the dark ages when books were all done by hand
    I am sure they did. Having your own kit can influence your IR35 status but the OP is talking accounting wise. Two very different things.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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