PDA

View Full Version : If I switch from an Umbrella to a LTD mid tax year can I claim on office furniture?



2BIT
14th March 2011, 12:12
Hi All,

Working under a brolly at the mo that doesn't allow you to claim on things like computer hardware, office equipment etc. If I changed to a LTD within the tax year could I claim for them under the LTD given that they are valid business expenses under a LTD?

Cheers

LisaContractorUmbrella
14th March 2011, 13:35
Hi All,

Working under a brolly at the mo that doesn't allow you to claim on things like computer hardware, office equipment etc. If I changed to a LTD within the tax year could I claim for them under the LTD given that they are valid business expenses under a LTD?

Cheers

Things like office furniture and office equipment would not be classified as expenses through a Limited Company; they would be considered a cost to the business. The profit for your business, upon which corporation tax is payable is determined by calculating your revenue for the period (i.e. the total value of the invoices that you have raised) less the costs or overheads of your business

2BIT
14th March 2011, 13:39
Things like office furniture and office equipment would not be classified as expenses through a Limited Company; they would be considered a cost to the business. The profit for your business, upon which corporation tax is payable is determined by calculating your revenue for the period (i.e. the total value of the invoices that you have raised) less the costs or overheads of your business

ah ok so the invoices have been paid for the period which I bought the office equipment so therefore wouldn't contribute to my revenue for that period.

cheers

LisaContractorUmbrella
14th March 2011, 15:00
ah ok so the invoices have been paid for the period which I bought the office equipment so therefore wouldn't contribute to my revenue for that period.

cheers

Not exactly - it's the fact that you said that you wanted to process them as expenses - they wouldn't be, they would be a cost to the company. Sorry not to make that clear

2BIT
14th March 2011, 15:13
Not exactly - it's the fact that you said that you wanted to process them as expenses - they wouldn't be, they would be a cost to the company. Sorry not to make that clear

sorry yeah didn't make that clear, assumed they were business expenses but suppose they would come under costs, stuff like paper would be an expense.

so say I went LTD next week, my revenue would only be from next week until the end of the tax year and because I didn't buy the items during that period I won't be able to deduct them as costs?

LisaContractorUmbrella
15th March 2011, 07:55
sorry yeah didn't make that clear, assumed they were business expenses but suppose they would come under costs, stuff like paper would be an expense.

so say I went LTD next week, my revenue would only be from next week until the end of the tax year and because I didn't buy the items during that period I won't be able to deduct them as costs?

Actually no paper would be a cost to the business as well :smile To be honest with you I would suggest that you find yourself a good accountant that knows the contractor market - you will have loads of questions like this when you first run your Limited Company and it always a good idea to run through them all with someone who has the knowledge to guide you through the process. Our sister company is SJD Accountancy - they may be able to help you - obviously other accountancy firms are available :wink