iPod touch as an expense

[BolshieBastard]

What does that prove? Sneaking small things through like iPods would never trigger any warning flags which is precisely why so many people abuse their Ltd in the first place.

Well what it 'proves' is there isnt any 'sneaking small things' through and their (my accontant's advice) advice is robust.

Sorry to piss on your chips again but what does your question prove, exactly?

You seem to have jumped to the conclusion my accountants gave the original advice when in fact, what I said was, if my accountant had of given me the advice, I would have been happy with it rather than turn to barrackroom accountants.

Again, as I said later, too many people being too anal. Well done .

[Wanderer]

Something has to be bought wholly and exclusively for the purposes of the trade to be allowable. If it was but there is private use, then the Benefit in Kind rules kick in. There are exceptions of course, things like computer equipment can have private use without a BIK, as can a mobile 'phone.

The exception to the rule that blacjac talks about is in EIM21613. Of particular interest is example 2, the Utility engineer where the employer provides a computer to the employee who uses it for about 5 minutes of work per day. Private use of the asset is substantial, however no tax charge arises because the computer was provided with the sole purpose of enabling the employee to do their work and they couldn't work without it so any non-business becomes purely incidental.

I don't know if this applies to assets other than computers but it kind of contradicts the "wholly and exclusively for business" mantra that we all live by.

As others say, if the iPod isn't for business use then tell the accountant that you aren't going to claim for it and put the expense against the director's loan account. It's your company, you don't have to do what the accountant says - they work for you not vice versa.

If you are buying an iPod to test some software you are developing then it it IS a business expense and it doesn't matter if the kids use it to play games on - see EIM21613.

[LisaContractorUmbrella]

The exception to the rule that blacjac talks about is in EIM21613. Of particular interest is example 2, the Utility engineer where the employer provides a computer to the employee who uses it for about 5 minutes of work per day. Private use of the asset is substantial, however no tax charge arises because the computer was provided with the sole purpose of enabling the employee to do their work and they couldn't work without it so any non-business becomes purely incidental.

I don't know if this applies to assets other than computers but it kind of contradicts the "wholly and exclusively for business" mantra that we all live by.

As others say, if the iPod isn't for business use then tell the accountant that you aren't going to claim for it and put the expense against the director's loan account. It's your company, you don't have to do what the accountant says - they work for you not vice versa.

If you are buying an iPod to test some software you are developing then it it IS a business expense and it doesn't matter if the kids use it to play games on - see EIM21613.

But to use your own example - in the case of the utility engineer, they are unable to fulfil the terms of their employment without the piece of equipment that has been provided for them - under what circumstances could you say that you couldn't fulfil the terms of your contract without an iPod. IMHO that would be the acid test for HMRC