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View Full Version : Hardware expenses - qualifying period



sammywammy
15th August 2012, 22:06
I recently purchased some hardware for my role as a System Engineer: nothing massive but close to a grand. I wasn't particularly careful with the overall cost (i.e. bought quality rather than value-for-money) as was looking to take advantage of the tax benefits of claiming the expenses through the umbrella company.

I've read several sites with mentions of the "10-month" qualifying period, although none of these seem like definite sources.

I am likely to have to resign from the umbrella company shortly and am concerned what will happen with the tax. As the hardware is legally the property of the umbrella company, if they claim that I need to pay the tax after resigning, can I simply return the hardware to them and get a refund?

LisaContractorUmbrella
16th August 2012, 07:03
I recently purchased some hardware for my role as a System Engineer: nothing massive but close to a grand. I wasn't particularly careful with the overall cost (i.e. bought quality rather than value-for-money) as was looking to take advantage of the tax benefits of claiming the expenses through the umbrella company.

I've read several sites with mentions of the "10-month" qualifying period, although none of these seem like definite sources.

I am likely to have to resign from the umbrella company shortly and am concerned what will happen with the tax. As the hardware is legally the property of the umbrella company, if they claim that I need to pay the tax after resigning, can I simply return the hardware to them and get a refund?

Have you asked them?

sammywammy
18th August 2012, 14:49
Have you asked them?

No, that's why I'm asking here and if I had wanted to ask them, I would have done so. There are several threads about the qualifying period but no mention of how long before the end of the assignment/resignation hardware expenses would need to be claimed.

malvolio
18th August 2012, 16:29
No, that's why I'm asking here and if I had wanted to ask them, I would have done so. There are several threads about the qualifying period but no mention of how long before the end of the assignment/resignation hardware expenses would need to be claimed.

So basically you are asking a random bunch of strangers to explain a specific piece of a company's internal accounting rules.

OK... I just happen to know it's 134.6 hours before your date of resignation.

HTH

Seriously, it's personal taxation, so aligned to the tax year. You need to ask the umbrella how they intend handling it, since they are the only ones who know their rules and your circumstances. But if the kit hasn't depreciated out (which I somehow doubt) you're going to have to pay something for it.

Next time, perhaps find out the rules before spending other people's money :tumble:.