Parasol and hardware expenses

[swebb]

Hi,

I'm currently using Parasol and they have a mechanism in place for buying hardware and saving some money. I spoke to them earlier about it and gave them an example of a laptop for £1000. I was told that I would buy the laptop for £1000 and then claim it as an expense. They would take £100 and for 10 months the laptop would be theirs but they assured me they would never actually ask for it. After 10 months they effectively give the laptop from me and have away with the £100 (or before if I leave them). However they said that because I would pay for it and not pay tax I would save around 70%!

Now I can't see how I would save 70% for a start I would have thought its more like 20-30%. Also I'm a little unsure about this £100 payment and the legal position, is the laptop ever mine ?

Anybody used this system or understand it better so I can get a better Idea if its actually worth using it. I'm currently looking at getting a macbook Pro with lcd screen and software to use for work.

Thanks

Steve

[Cooperinliverp00l]

i was with Parasol for 3 years and recently left to form my own LTD company. When i got my laptop there were two option for me to be able to claim it as expenses. One was how you explained and the other was to claim a set £500 for that year and that would be all i could claim. I thought it was a bit strange how i had to give them money to claim expenses and according to them wouldn't own my laptop. So i went with the one off £500 claim.

you may want to find out what the £100 payment is going to be used for ? and why you have to pay it ?

[ratewhore]

Unless you're on a tulip rate, just buy the damn thing personally. You can afford it. Then later, if you set up a Ltd, you can sell it to the Ltd...

[absoft]

I have bought a laptop under the Parasol scheme. I think the £100 is some kinda red tape; I havn't had to pay anything. The cost of the laptop is taken out of gross earnings saving 40% tax and 8% employers NI so you get it for about half price; a good saving unless you have as much money as RateWhore ! The only downside is having to send off the original receipt; if the unit went wrong under warranty you may be required to produce this to get it replaced or fixed.

[LisaContractorUmbrella]

If Parasol are paying you this as an expense then the laptop belongs to them - that's why they need the receipt. The £100 will be a nominal amount you buy it back from them at when your contract finishes. Downsides would be if the Revenue contended it wasn't for business use and therefore deny the whole thing in which case the whole ruse actually costs you £100 over and above what it would if you'd bought it personally, or, if the Revenue think that the laptop was worth more than £100 in which case they would tax you on the difference

HTH