Expenses - laptop purchase leave abroad

[Merklynn]

Hi,

I know similar to another question asked here but with one difference, thought I would ask specifically:

I am a contractor in the UK. I travel abroad a fair bit, if I were to purchase a laptop abroad for the purpose of logging in and working while there, can I still claim this back as an expense?

I can buy one here and take it there of course but when I travel to the US so much seems I should take advantage of their prices, I mean even factoring in state taxes we're talking about $300 of savings. I can leave it at an address there as I have a desktop machine here etc. so there are no import tax considerations but I was wondering is that acceptable (save another £200 in corporation tax then)?

If so how would I do it, can I just buy it in my name and then charge it back? Does it need to be done in the company's name (difficult, I tried registering for a business account with amazon but they wanted details of USA business license etc.).

If I can't do that seems I am stuck saving only one way or the other, cheaper prices there or corporation tax here (though that way I get to bring it back).

Regards

[SueEllen]

What do you mean by "abroad"?

How often are you in those countries?

Will anyone be able to use the laptop when you aren't using it?

[Lance]

You’re over thinking it. If you need a laptop for business then it’s a valid business expense.
Where you buy it is immaterial.

[TheCyclingProgrammer]

So much overthinking when it comes to expenses on here sometimes. If it’s for the business then buy it, ideally invoiced to the company.

It’s your business - you decided whether or not it’s necessary for the smooth running of your business. It doesn’t need to be strictly necessary to make it tax deductible, it just has to be wholly and exclusively for business purposes (insignificant personal use doesn’t matter).

[BlasterBates]

That is a tricky one because you will effectively be working in the US, normally HMRC wouldn't recognise that. They would view that effectively as a US business.

I think you would have difficulty with that unless you imported the laptop and paid the duty.

[Merklynn]

response

Hi, thanks for the replies:

by abroad I mean mostly USA

I definitely do need it, I poured coffee in my old one by accident and the keyboard is broken. I could take one with me but the price here is so high by comparison, thought I might as well take advantage of theirs (if I can).

No one else would be accessing it

The whole thing about bringing it back etc. is my concern. As I say, I don't need it here really as I already have computers I use, its just while I'm there. If I have to bring it back and pay vat and duty probably wont be worth it anyway.

If I can't invoice it to the company what would be the best way to claim it as an expense?

Regards

[WTFH]

Buy one in the UK, take it with you and bring it home when you come back. Then there’s no issue.
... unless, of course, there’s something you’re not telling us.

[WordIsBond]

There's nothing complex about it. He owns a UK limited company. The computer is being purchased for that company. The US-sourced income is revenue to the UK company. A US-sourced expense is an expense of the UK company.

He is not purchasing the computer for a US business, nor is he purchasing it so he can work over there. A UK company is purchasing it to facilitate its export of services to the US.

Maybe an accountant will set me straight but I'm unaware of any rule that says you have to bring foreign purchases back, or pay any duties on them, to be able to expense them.

[BR14]

I bought a laptop in Basel, used it there, and brought it home when the gig finished.
company expense (in CHF's converted at time of purchase)) no problem.

[Merklynn]

response

I bought a laptop in Basel, used it there, and brought it home when the gig finished.
company expense (in CHF's converted at time of purchase)) no problem.

The only reason I don't really want to bring it home (aside from the fact I don't need it here) really is it negates all savings if I have to pay duty and VAT on it anyway, might as well just buy it here