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snaw
25th March 2004, 16:04
Got a question about buying computer equipment through a LTD company. I understand that the allowance is now set at 50% for first year.

The question is I'm going to do a CCIE this year, this is gonna cost a bucketload in hardware for a homelab (5000+ quid I'm guesstimating).

If I buy it new from a company 50% I can offset against company tax. How about if I buy it 2nd hand from Ebay - is there someway of doing this so I can offset 50% of this sort of purchase through the business (Assuming I'm buying from individual buyers and not a company)?

tim123
25th March 2004, 17:17
1) you still have 5 (I think) more days to get 100%.

2) The amount is offset against your profit before the tax is calculated, it isn't offset against the tax payable.

3) Is it sensible to buy 5 grands worth of computer kit from some private seller (or many sellers) on ebay. IMHO if a second-hand computer item is any more than 10% of the cost new, it is over-priced.

Or are you talking about the people with ebay businesses who sell new stuff? These people usually give receipts.

tim

snaw
25th March 2004, 17:41
Tim,

Thanks for your reply.

I won't be buying the kit just now as I just started the company and don't have the money available for it at the moment.

I would be looking at buying bits and pieces over the next 3-6 months - not in one go (Involves buying about 10+ items ranging in prices from 00's to 000's).

There is a huge difference from buying new to buying on ebay (Approx 25% of list price, sometimes better), it's a pretty specialised market - not something you would buy for your home unless you were sitting this qualification to be honest so doesn't really compare to normal computer equipment.

Basically just now I'm monitoring ebay sales and building a spreadsheet of what the stuff I am looking for is selling at. Generally the ones selling are private - people selling as business don't give discounts to justify buying through thtem in ebay.

snaw
26th March 2004, 12:30
Anyone?

roger rabbit
26th March 2004, 12:52
full cost of purchase is eligible for tax relief - does not matter who you buy it from or how - ebay private seller is ok, although ask for a letter showing price paid signed by them as proof for tax purposes. Take care over benefit in kind rules if you are using this stuff personally. Not clear from your Q if these might apply, although there are reliefs for computer equipment

snaw
26th March 2004, 13:24
Thasks Roger.

The equipment would be used for training & as a testing lab and is directly related to what the business does. I spoke to already with an acct and it would be seen as a business related qualification rather than a personal one in his view.

The ebay advice is good news for me - so long as I have a reciept of some sort (Even a handwritten letter detailing sale) I can use this is what I understand from your reply.

Mark Snowdon
28th March 2004, 19:22
Snaw,

buying privatly is OK, I had to give the ir a list of what the items were and what they cost. I assume you are looking at a pile of esxpensive cisco kit ?

Be aware they told me that there is a claw back if you then sell the equipment before it has been written off on your books.

Roger can give a full answer on how that works Im sure.