Claiming new Laptop as an expense

[Rivendell]

Hi,

Wondering if I can claim a laptop as an expense. I need a new one for work (taking and using at a client site) but will also make use for home use. Can I claim it as a straight expense? Whilst I'm flat rated for VAT, I don't have the cash in my current account so wanted to raid the Business one to expedite.

Thanks

[northernladuk]

I am sure you understand this gets asked alot!!

Try this search.. 215+ threads asking more or less the same

laptop expense site:forums.contractoruk.com

or in linky format

[Greg@CapitalCity]

Not an expense - it should get recorded as an asset, but the tax treatment is the same as per an expense. The full cost will be deducted from your profits when calculating company tax.

The laptop must primarily be purchased for business, and any personal use purely incidental. Just get your company name on the purchase invoice, and pay for it from the business bank account.

[prozak]

Greg.

Surely you can expense it up to a certain amount?

I expense all computer stuff and consumables up to £750 per item.

[ASB]

Greg.

Surely you can expense it up to a certain amount?

I expense all computer stuff and consumables up to £750 per item.

There isn't a hard and fast rule. A lot of people will suggest that if the purchase has an anticipated life of > 1 year then it's an asset. Some will look at a monetary value. It depends on what it is.

In my view a £750 laptop is an asset; but a 750 visual studio subscription is an expense. Then again a £200 desk is probably an asset.

Some possibly useful guidance:
What is a Capital Asset? - FreeAgent

[Martin at NixonWilliams]

Greg.

Surely you can expense it up to a certain amount?

I expense all computer stuff and consumables up to £750 per item.

Prozak

Technically speaking most things should be treated as an asset of the company (normally if their expected useful life is in excess of 1 year). However, this would mean things like staplers, rulers, pens perhaps?!? would need to be treated as assets which in practice is un-workable so most accountants use a rule of thumb based on a monetary value as a basis of determining whether or not to treat the item as an asset or an expense.

£500 is generally a good benchmark but it does depend on the item in question, an office chair for £400 should probably be treated as an asset but software costing £600 would probably be an expense.

If the values involved are relatively small then the overall tax treatment will probably be the same i.e. expense getting 100% CT relief or an asset getting 100% CT relief with capital allowances.

I hope this helps.

Martin

[Greg@CapitalCity]

Greg.

Surely you can expense it up to a certain amount?

I expense all computer stuff and consumables up to £750 per item.

Yes, what those guys above said. The tax man won't get too concerned as the tax treatment will be the same anyway - however from a financial reporting aspect you have probably been mis-stating your company assets.