Selling laptop bought under flat rate scheme as it can't be returned

[maccy]

I bought a laptop for my ltd which is unsuitable, but can't be returned as it was a business purchase.

I would now like to sell it via ebay, as it will just collect dust otherwise. It was bought under the flat rate scheme.

Is there anything I need to bear in mind? Do I need to charge the buyer VAT on it?

[kal]

I bought a laptop for my ltd which is unsuitable, but can't be returned as it was a business purchase.

I would now like to sell it via ebay, as it will just collect dust otherwise. It was bought under the flat rate scheme.

Is there anything I need to bear in mind? Do I need to charge the buyer VAT on it?

So you spent over 2k on a business laptop that wasn't suitable, what was wrong with it!

[Contreras]

I bought a laptop for my ltd which is unsuitable, but can't be returned as it was a business purchase.

I would now like to sell it via ebay, as it will just collect dust otherwise. It was bought under the flat rate scheme.

Is there anything I need to bear in mind? Do I need to charge the buyer VAT on it?

If you are VAT registered then you must charge VAT on the sale price.

The decision is whether you pay that VAT to HMRC or only the FRS percentage:

- If you treated the purchase as a capital asset and reclaimed the VAT then HMRC are due the full VAT you charged.

- Otherwise, if you didn't reclaim the VAT on the puchase, then HMRC are due the FRS percentage on the sale price.

Also there would be an accounting exercise for CT and company assets, but likely to be cost neutral I think.

[TheFaQQer]

I bought a laptop for my ltd which is unsuitable, but can't be returned as it was a business purchase.

Why can't it be returned?

[northernladuk]

Two laptop purchases in a short period of time is going to come under some pretty close scrutiny if you are investigated surely?

[Unix]

Two laptop purchases in a short period of time is going to come under some pretty close scrutiny if you are investigated surely?

Why? As long as the tech is related to you business you can buy it, it's a good way of reducing your corp tax as well. I've bough laptops/macbook/ipads monitors desktops etc and used them for my business.

[TheCyclingProgrammer]

Two laptop purchases in a short period of time is going to come under some pretty close scrutiny if you are investigated surely?

I don't see why. Two laptop purchases is hardly out of the ordinary and I don't see why HMRC would waste time examining such trivial things. So long as they were both wholly and exclusively for business purposes there is no issue.

Other than that, what Contreras said. Also confused as to why them being a purchase means they can't be returned though.

Due to needing to issue a VAT invoice, it might be easier for OP to sell the laptop themselves (at the full second hand value, to avoid any potential BIK issues) and raise a VAT invoice to themselves, then flog it on eBay as a personal transaction.

[Batcher]

I don't see why. Two laptop purchases is hardly out of the ordinary and I don't see why HMRC would waste time examining such trivial things. So long as they were both wholly and exclusively for business purposes there is no issue.

Other than that, what Contreras said. Also confused as to why them being a purchase means they can't be returned though.

Due to needing to issue a VAT invoice, it might be easier for OP to sell the laptop themselves (at the full second hand value, to avoid any potential BIK issues) and raise a VAT invoice to themselves, then flog it on eBay as a personal transaction.

During my IR35 investigation, HMRC actually asked if the one laptop I had purchased through the business was required for the running of my business. It was easily batted away but I often wonder if they ask the same question about the thousands of laptop/PCs being used at the clientcos I contract at.

As to the OP, I would agree selling it to yourself at the proper price is the best way if you can't return it.

[CloudWalker]

Laptops can be very heavy to lug about so One laptop at Home (Business site) one laptop at Work (client Site) job done!

[philip@wellwoodhoyle]

Why can't it be returned?

Businesses have no legal right to return goods they simply don't want. Consumers have the right under the distance selling act, but it doesn't apply to businesses. Of course, many sellers will allow businesses to return unwanted goods, but it's at their discretion and according to their T&Cs. I got caught out by this once and am now very careful to check the sellers' T&Cs to check whether refunds are offered before I make a purchase.