Can i claim back my laptop ?

[sugsy]

i am new to the game and i need a new laptop. can i claim the whole cost back as a tax benefit, i.e the whole cost is deducted from my end of year tax total ?

wanted to check this before i purchased ?

[jason986]

Yes you can. Are you vat registered? All reclaimable if you are.

[sugsy]

yep fully vat registered

[PerlOfWisdom]

the whole cost is deducted from my end of year tax total ?

It's not deducted from your total tax, but from the taxable amount, so you'll get nearly half back.

[sugsy]

excuse my ignorance, what is the difference ? taxable amount or total tax ?

[tim123]

Strictly speaking its cost it not allowable as a company expense, but a Capital Allowance for the item is available as a company expense.

The CA may be 100% of the cost or it may be something less than this. IIRC the current rules allow 100% first year allowance for IT equipment, or did that concession end?

As to what's the difference between taxable amount or total tax?

You pay 1K for the computer.

Say you turnover 50K. This gives you a (made up) tax bill of 20K. You don't deduct the 1K from the 20K meaning that you pay 19K tax, but from the 50K turnover giving you a taxable amount of 49K resulting in a pro-rata tax bill of
19.6K.

Note, that it doesn't really work like that either. The expense is a company expense so buying it saves company tax. But most consultants pay the bulk of turnover to themselves so ultimately it affects your PAYE.

Finally, don't forget that the computrr belongs to the company. When you, um the company, dispose of it the company gets the proceeds, not you.


tim

[nobody here but us chicke]

no 100% fya - I think it's 50 now

the 100% allowance dropped off. I'm fairly sure it is now 50%.

[threaded]

In Denmark you can claim the whole lot against tax.

If you don't want to claim the whole lot, i.e. it is a new business and you can't, they will give you an allowance.

So if you do the game right you can end up ahead.

I don't pretend to fully understand it, I pay an accountant for that.

[Churchill]

In Denmark you can claim the whole lot against tax.

If you don't want to claim the whole lot, i.e. it is a new business and you can't, they will give you an allowance.

So if you do the game right you can end up ahead.

I don't pretend to fully understand it, I pay an accountant for that.

Now there's a refreshing change, you pretend to understand everything else!