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Sell company iMac

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    Sell company iMac

    Hello,

    I bought an iMac for my limited company in May 2016. I am looking to sell the iMac, do I need to inform my accountant & am I supposed to pay the money received from selling the iMac back into the business?

    Kind Regards

    #2
    For a four year old laptop?

    I would expect that depreciation would have reduced the capital to £0, but you’ll need to confirm that with your accountant.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

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      #3
      No


      Sent from my iPhone using Contractor UK Forum

      Comment


        #4
        If the company bought the asset, any funds received on selling it should go to the company. It doesn't belong to you. It's like using your parents' car every day and selling it but keeping the cash.

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          #5
          No.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #6
            Let's combine all the posts above

            The company book value will be zero as it should be fully depreciated.

            And while in the ideal world you should be booking the sale in the company (as LM states) after 4 years it's probably broken in some way or other (if it was a Lenovo, Dell or Surface device it would definitely have broken in that period) - so it's hardly the biggest crime to not pass the money back to the company.

            Before anyone asks it's why I now treat laptops as disposable items and never spend more than £1k including VAT on them.
            merely at clientco for the entertainment

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              #7
              Whilst probably valued at zero it needs to be disposed of correctly. If you just sell it and trouser the cash that is theft.
              If you buy it personally and resell it for more then that is fraud as you’ve have knowingly sold it to yourself at less than it’s worth.

              The reality is that if it’s ‘faulty’ it goes and the accountant removes it from the asset list. What happens after that is fine as long you’re not dishonest....

              So in a roundabout way we’re saying do what you want but treat it properly in the company books and deny all knowledge if ever challenged.
              See You Next Tuesday

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                #8
                A fully depreciated asset still belongs to the company and any gain from its resale needs to be recorded in your P&L.

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                  #9
                  But if the company transfers ownership/gifts it 'De minimis' to the director first?, there is no tax for the director to pay as it has a book value of $0
                  Last edited by Fraidycat; 13 January 2021, 22:21.

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                    #10
                    Or it's not really a 4 year old iMac but some classic bit of kit that will fetch a fortune from a collector. The OP used company funds to buy it speculatively as they didn't want take funds out and incur tax and are now stuck on how to get their mitts on the profits

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