Hi All – this is my first post so please be gentle....
After almost 18 months with my Limited Co provider (Gabem), and following the advice posted here from SJD / Nixon Williams et al, I decided to go solo and recently setup my own Limited Company (probably the best decision i've ever made following Gordon's announcement last week!).
I think I’m pretty much there in terms of subsistence (yes I’m keeping ALL my receipts & only claiming the ACTUAL costs incurred), definition of a temporary workplace, dividend payments etc but I’m really struggling with capital items and in particular how Gabem ‘treated’ the expense claim I put through in Feb this year for a Laptop.
To keep things simple, let’s say the laptop cost me £1,000. I submitted this expense to Gabem via their standard expense claim form and sure enough the following Friday, I received £1,000 back before Corp Tax (and with no IT or NI payable by me) from the Limited Company that Gabem administered on my behalf.
From my recent readings (and please correct me if this is wrong!), I thought that Capital Items such as a laptop should not be fully ‘expensed’ through the Profit & Loss Account of the Limited Company but instead put on the Balance Sheet as an asset of that Limited Company – of which only 50% could be passed through the Company and therefore paid back to me?
Thinking about it logically, it does make sense that if an employee buys a company Laptop from his/her own back pocket, the company should fully reimburse that employee for the expense. But in order to calculate the CT liability (and therefore the dividends payable to me), the Gabem Ltd Comp should surely only put through £500 and not £1000 using my example above?
Any help with this would be very welcome, cheers....
After almost 18 months with my Limited Co provider (Gabem), and following the advice posted here from SJD / Nixon Williams et al, I decided to go solo and recently setup my own Limited Company (probably the best decision i've ever made following Gordon's announcement last week!).
I think I’m pretty much there in terms of subsistence (yes I’m keeping ALL my receipts & only claiming the ACTUAL costs incurred), definition of a temporary workplace, dividend payments etc but I’m really struggling with capital items and in particular how Gabem ‘treated’ the expense claim I put through in Feb this year for a Laptop.
To keep things simple, let’s say the laptop cost me £1,000. I submitted this expense to Gabem via their standard expense claim form and sure enough the following Friday, I received £1,000 back before Corp Tax (and with no IT or NI payable by me) from the Limited Company that Gabem administered on my behalf.
From my recent readings (and please correct me if this is wrong!), I thought that Capital Items such as a laptop should not be fully ‘expensed’ through the Profit & Loss Account of the Limited Company but instead put on the Balance Sheet as an asset of that Limited Company – of which only 50% could be passed through the Company and therefore paid back to me?
Thinking about it logically, it does make sense that if an employee buys a company Laptop from his/her own back pocket, the company should fully reimburse that employee for the expense. But in order to calculate the CT liability (and therefore the dividends payable to me), the Gabem Ltd Comp should surely only put through £500 and not £1000 using my example above?
Any help with this would be very welcome, cheers....
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