Startup hardware equipment

[kitkatrobins]

Just set-up my own limited company and looking at getting a laptop. What are people thoughts about buying outright, 0% credit or leasing (Computer Leasing, Laptops, Notebook, Computer Equipment Leasing and Financing).... I keep hearing leasing is better tax wise and you can upgrade after 18 months..

Many thanks

[northernladuk]

I have never heard it being better tax wise to lease and we have had plenty of questions about buying kit for start ups in the past.

Question is though, does your LTD have any money yet? You were just getting ready to leave permie land last time you posted.

If not you are going to have to buy it yourself and sell it back to the company when you have some money in it I believe.

[kitkatrobins]

Yes I will have money very shortly, have 6 month contract ready to go in 2 weeks time (in notice period of perm work). I do have the money up front and could pay and claim as an expense, its more what is the best to do that... can I claim all of it? (Still learning lots)...

[northernladuk]

Yes I will have money very shortly, have 6 month contract ready to go in 2 weeks time (in notice period of perm work). I do have the money up front and could pay and claim as an expense, its more what is the best to do that... can I claim all of it? (Still learning lots)...

You can and you can sell your printer and other similar type stuff back to your LTD at fair market price!! If your printer is 3 years old do not try and claim full price on it.

Best thing for you to do right now is get used to the search method as everything you can thing of right now will have been asked many times. Also read the guides on the right if you haven't.

As an example the search below finds all threads related to start up costs

start up costs site:forums.contractoruk.com/accounting-legal - Google Search

[SallyPlanIT]

Just set-up my own limited company and looking at getting a laptop. What are people thoughts about buying outright, 0% credit or leasing (Computer Leasing, Laptops, Notebook, Computer Equipment Leasing and Financing).... I keep hearing leasing is better tax wise and you can upgrade after 18 months..

Many thanks

Leasing may have benefits but you may struggle to sign an agreement with a brand new limited liability company with no accounts. Where as companies such as certain mortgage providers will go on the contract income, I've not come across this with leasing, yet.

[portseven]

Is this not good enough?

[Nixon Williams]

Just set-up my own limited company and looking at getting a laptop. What are people thoughts about buying outright, 0% credit or leasing (Computer Leasing, Laptops, Notebook, Computer Equipment Leasing and Financing).... I keep hearing leasing is better tax wise and you can upgrade after 18 months..

Many thanks

I am struggling to think of any reason why leasing would be a good choice for a typical contractor. Leasing is not more tax efficient for contractors.

Many retailers will try and push leasing because it sounds cheaper to say 'only £4 per week' etc - but many people fail to check how many weeks this must be paid for. The retailer may also get a 'kick back' from the finance company, hence why they may be keen.

Your company will get 100% tax relief on the purchase. If you are on the Flat Rate VAT scheme you could reclaim the VAT if the invoice is for more than £2000, although I realise that this is unlikely for a laptop!

Alan

[d000hg]

Yes I will have money very shortly, have 6 month contract ready to go in 2 weeks time (in notice period of perm work). I do have the money up front and could pay and claim as an expense

What money do you have up front in your company account?