Laptop "Package"

[theemeestroo]

I am on the flat rate scheme so to claim the VAT on a new laptop I have to spend £2000+ plus on one. As much as I would love to do this I have had a word with a supplier I know who can sell me a £1000 laptop and a £1200 LCD TV and do me an invoice saying Laptop £2200 inc free LCD TV. Would I be able to get away with this? He can also do me a pro-forma invoice stating the laptop and then £2200 for the laptop and no mention of LCD tv at all. Is a pro-forma invoice enough to be submitted as a receipt?

Ta
Rich

[Mordac]

I strongly suspect you'll need a VAT invoice to justify in the event of an investigation. You don't want to be caught screwing the VAT Man, or he will really enjoy screwing you in return...

[Sockpuppet]

I am on the flat rate scheme so to claim the VAT on a new laptop I have to spend £2000+ plus on one. As much as I would love to do this I have had a word with a supplier I know who can sell me a £1000 laptop and a £1200 LCD TV and do me an invoice saying Laptop £2200 inc free LCD TV. Would I be able to get away with this? He can also do me a pro-forma invoice stating the laptop and then £2200 for the laptop and no mention of LCD tv at all. Is a pro-forma invoice enough to be submitted as a receipt?

Ta
Rich

You'd be better off buying it as a "package" so no FREE LCD TV just claim that you need it for presentations and its part of a predefined package that you are buying. Getting stuff that is overpriced and accompanied by a "free" TV is going to get you an ass kicking from the Tax Man.

[theemeestroo]

So if I can get a VAT invoice that says "Laptop Package : £2200" with VAT number etc on their and an original quote that says the same and ties up with it, this should be enough? If investigated, what would the Tax man do? Would they be able to approach the company I bought it from and find out what secrets are really lurking in this package? Last time I bought a laptop from here it also said package but that was because I bought a bag and another stick of memory and they bundled it together to give me a discount.

Worst case scenario, if after a closer look they say no to the LCD TV I would just have to pay the VAT and corporation tax back?

Thanks
Rich

[Ardesco]

So if I can get a VAT invoice that says "Laptop Package : £2200" with VAT number etc on their and an original quote that says the same and ties up with it, this should be enough? If investigated, what would the Tax man do? Would they be able to approach the company I bought it from and find out what secrets are really lurking in this package? Last time I bought a laptop from here it also said package but that was because I bought a bag and another stick of memory and they bundled it together to give me a discount.

Worst case scenario, if after a closer look they say no to the LCD TV I would just have to pay the VAT and corporation tax back?

Thanks
Rich

Worst case scenario = they throw you in jail for VAT fraud.

It really isn't worth the risk for the sake of claiming back ~£330, what's that 2 days rate absolute maximum (1 day for the majority I would have thought)

[theemeestroo]

Worst case scenario = they throw you in jail for VAT fraud.

Hmm, possibly not the best option then. I just use the "I am saving 36.5%" line to the missus which helps push any "necessary" purchases through
Might just bite the bullet and pay for the laptop through the comapny and get the TV myself. I don't fancy a few months picking the soap up!!!

[BankingContractor]

Businesses do this all the time - ask any Buyer of IT equipment and he'll tell you the same thing.

Example, you want to buy 5 printers for your company, you do a deal for 5 (but not at the very best price that you could've done it at) and then after a week or two a plama/laptop, etc comes through the post for you personally, for free.

I know lots of Buyers who've been given 'free' LCDs, computers, etc. Its done to encourage you to buy their particular equipment, and they then get the repeat revenue for the consumables.

[Ardesco]

Yes but when you are buying 5 all singing, all dancing lasor printers for a couple of grand a pop a free laptop/plasma screen (that is undoubtably not worth much) is nothing much extra. When you are paying £2200 for a £1100 laptop and getting a £1100 plasma free it all looks very dodgy and the VAT man will probably investigate and screw you over for VAT fraud.

At the end of the day you can do what you like but I wouldn't screw about with the VAT man, he is not a good person to piss off.

[theemeestroo]

The flat rate scheme is annoying. Well, it is actually pretty sweet but I have spent the last 2 weeks deciding whether to get a laptop which will suffice for my needs for a £1000 or spending £2000 on a super-fly one just to save £300 in VAT!!

I just wish I was a little less cautious like some of my pals who have so far managed to buy, Plasmas, Sat Navs, Stereos (how they will justify I do not know) and whizzy new HD dvd players through their company.

Anyway, resolution is my supplier will bump the price of the laptop up by £500 (perfectly reasonable as it's rrp is £1900) and then I will buy the TV myself with £500 discount. No VAT back so no VAT issues. 1 normal receipt, no "laptop package".
I might sound like a penny pincher but I am closing in on the magical £36K limit so to pay full price would mean paying an extra 25% in tax to take the money out, and we cant have that!!

[Spacecadet]

Businesses do this all the time - ask any Buyer of IT equipment and he'll tell you the same thing.

Example, you want to buy 5 printers for your company, you do a deal for 5 (but not at the very best price that you could've done it at) and then after a week or two a plama/laptop, etc comes through the post for you personally, for free.

I know lots of Buyers who've been given 'free' LCDs, computers, etc. Its done to encourage you to buy their particular equipment, and they then get the repeat revenue for the consumables.

I've been on the receiving end of that... always a very nice deal