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FinallyMe
21st July 2004, 10:27
Hi

I'm planning to buy a pc in the next couple of weeks for around £2100

I know if I do it thru Ltd Co I can claim back VAT in my next return

but

Can I claim it 100% as an expense against Corp Tax???


Thanks
Ian

allanh1
21st July 2004, 10:43
Ian,

You cant claim the 100% back int he first year anymore, But after the budget i believe it that you can claim 50% in the first year and 50% in the second year against corporation tax.

Cheers,

Rhino
21st July 2004, 16:55
I know the IR have recently allowed limited companies to write off larger percentages of their fixed assets against tax each year.

Unfortunately when I bought my £2k computer in 1996 the rule was 25% of the reducing balance, so this computer still has a book value of several hundred pounds. Truth is, I would have to pay someone to take it away.

Vetran
21st July 2004, 17:11
sounds like time for a strategic cup of coffee on the motherboard.

FinallyMe
22nd July 2004, 14:15
Thanks for your help guys

50% per years not bad then - especially as I'll only be using it for games :rollin

thepanadol
20th August 2004, 09:21
Hi guys...i am new to contracting in UK...am considering buying a notebook too...questions i have..

a) can i buy it overseas and claim it back provided that I have the receipts?

b) just to clarify, if say the notebook is £2000, based on the previous discussion, i could only put thru £1000 as expenses?

TIA :)

tim123
20th August 2004, 10:53
thepanadol

lets answer them in reverse,

b) You're new to contracting, so do you have (or intend to have) a limited company? If yes then your terminology is wrong. A PC is not an expense it is a capital item. The reimbursment process is not a case of you spending some of your money and the company giveing it to you back in a tax free way, but one where the *company* buys and then *owns* the computer. If you don't have a limited company then to receive the allowance against your personal income you will have to show that it is *necessary* for you to have a computer for a business need. This barrier is extreamly high and we need to know more about what you will be doing to tell if you will pass this test.

a) Why do you want to buy a computer overseas? Assuming it is because of price, then IME MO prices for computers in Europe are much the same as in the UK (though shop prices do tend to be lower), you might save a couple of percent but that is all. If you mean the US then it is often the case that once you have declared the item and paid Import Duty and VAT (I presume that you are not VAT registered yet) the perceived savings disappear. Or did you think that the Revenue will allow you to put through the books of your company an item that you have illegally imported?

HTH

tim

thepanadol
20th August 2004, 11:45
I have joined an umbrella company in UK where they handle the invoicing and paying me..etc..etc.. so i can claim expenses for PC equipment he told me.

As of overseas purchase...GOOD POINT about VAT....

The reason for buying overseas is because i am looking for certain models that are not available in UK/Europe.

So assuming if I buy it here for £2000...how much expenses would I be able to claim off?

Contractorumbrella
20th August 2004, 15:11
You will only be able to claim the cost of the PC as an expense through your umbrella company if you can prove that it is specifically required for your contract. Unfortunately you cannot buy it for your personal use and the claim it as an expense - this should have been fully explained to you by your umbrella company.