Expenses related to the Limited Company.

[Bumble79]

Hi,

I set up my limited company 2 weeks back and got my business bank account opened.
My payment will be in only next month.

Now, I want to buy an IPad for company's use. Since I do not have money in my business
bank account, would it be alright to get it in the company name and pay it out of my
personal account and claim for expenses.

Any advice/suggestions appreciated.

Thank you.

[SueEllen]

Yes.

[Bumble79]

Yes.

Hi Sue,

Sorry, If I am bothering you again. I just wanted to reconfirm.
Are you saying , yes, that I can pay out from my personal account
but buy it on the company's name and claim that as an expense.

Thank you.

[SueEllen]

Hi Sue,

Sorry, If I am bothering you again. I just wanted to reconfirm.
Are you saying , yes, that I can pay out from my personal account
but buy it on the company's name and claim that as an expense.

Thank you.

Yes.

An iPad may be an asset so I would check with your accountant what their limit is for stating something is an asset rather than an expense.

Just make sure you keep proper accounting records of everything you pay for. Download the SJD accountancy spreadsheet* (you need to give an email address but it's free) and keep it up to date with your expenditure if you don't have any other accounting software.

*Use google to find it

[Bumble79]

Yes.

An iPad may be an asset so I would check with your accountant what their limit is for stating something is an asset rather than an expense.

Just make sure you keep proper accounting records of everything you pay for. Download the SJD accountancy spreadsheet* (you need to give an email address but it's free) and keep it up to date with your expenditure if you don't have any other accounting software.

*Use google to find it

Thank you so much!

[northernladuk]

Are there any rules about what constitues as a business asset and what it is used for to be eligible as such? For example iphones were not considered the same as a Blackberry until recently.

Would the iPad fall in to the same catagory that it is a gadget that happens to do a few things rather than a dedicated business tool (lets assume you are not running specific client apps on it like proscape etc, just general use, bit of mail, web browsing) or have they canned that line of thinking now?

[Wanderer]

I think you can expense something like an iPad it as long as it's wholly and exclusively for business use and personal use is not significant. I also thing that if the value is <£500 then it's just accounted for as an expense rather than an asset though it's worth double checking this.

[SueEllen]

Are there any rules about what constitues as a business asset and what it is used for to be eligible as such? For example iphones were not considered the same as a Blackberry until recently.

Would the iPad fall in to the same catagory that it is a gadget that happens to do a few things rather than a dedicated business tool (lets assume you are not running specific client apps on it like proscape etc, just general use, bit of mail, web browsing) or have they canned that line of thinking now?

There is absolutely nothing on their pages saying anything specifically about iPads, Kindles etc.

Probably because it's impossible to keep up with the different small gadgets businesses would find useful.

[northernladuk]

I think you can expense something like an iPad it as long as it's wholly and exclusively for business use and personal use is not significant. I also thing that if the value is <£500 then it's just accounted for as an expense rather than an asset though it's worth double checking this.

Never having owned an iPad and not really fussed about getting one can you justify it as wholly exlusively? I thought they were more a social toy than business tool?

[eek]

Never having owned an iPad and not really fussed about getting one can you justify it as wholly exlusively? I thought they were more a social toy than business tool?

I mainly use mine for keeping the 100 textbooks I like to have around on the off chance I need the answer to something.

I didn't expense it through the company as it was £100 +£20 a month on three when the ipad2 appeared. I probably could expense one for development and testing purposes but I'm not that bothered at the moment.