Laptop for my LTD

[gallotta]

I bought a laptop, and not sure how to categorise it in my books, should it be just an expense, or be declared as an asset ? What the best (and easiest) way to treat this ?
Thanks in advance

[javadude]

I bought a laptop, and not sure how to categorise it in my books, should it be just an expense, or be declared as an asset ? What the best (and easiest) way to treat this ?
Thanks in advance

My accountant suggested it should be an asset, depreciating by 1/3rd per year. Not sure if that's the best/easiest, but then I'm not an accountant

[northernladuk]

Treat it like and accounting issue that you need to speak to you accountant about.

[VectraMan]

It's easiest and best if you can treat it as an expense, but accountants have different ideas as to where the cut off is between expense and asset. If it's £2000 you probably need to call it as asset; if it's £100 that'd be silly. Strictly speaking it is an asset - i.e. you could sell it again.

[Danglekt]

I told my accountant, they did the rest.

Though mine is a reconditioned 175 quid jobbie

[TheCyclingProgrammer]

Its really up to YourCo how it chooses to classify things as either expenses or assets so I would go with your accountant's advice on this. I used to classify all hardware as assets, including phones and such but now I tend to classify hardware below £1k as an expense and anything above as an asset. So the company phone, iPad and Apple Watch are expenses but my laptop is an asset.

It makes little different to the tax treatment overall as you offset the cost in your first year under the annual investment allowance. The accountings a bit more involved for assets as you have to account for depreciation (and add it back when calculating your CT bill) and handling the sale/write-off of the asset is a bit more involved compared to just an expense.

[Scruff]

It will be written off as part of your Investment Allowance for Tax purposes when your accountant calculates your Corporation Tax. The accounting treatment is different and your Accountant will deal with this, and if necessary capitalise and depreciate it. They are two separate matters. Sounds confusing so let your Accountant advise and deal with it.

[NibblyPig]

Spend over 2000 quid and you can claim the VAT back

[SueEllen]

Spend over 2000 quid and you can claim the VAT back

But only if you require an expensive laptop "package" which must all come from the same VAT registered retailer and be on one invoice. So don't use Amazon marketplace.

[NibblyPig]

I am waiting for skylakes next month and I will order a maxed out dell with a hefty warranty and insurance package.

I am hoping they do an XPS 13 refresh but all I am seeing in the news so far is a new XPS 15 wanky hybrid 2 in 1. Tablets are tulip and they only exist because of the ipad hype and I don't want some flimsy piece of crap.