how much can I spend on a desktop computer for testing and home lab ?

[trsisko]

Hi there,

I don't see the point in spending low because I want it to last, plus I wish to run several virtual machines including a database so it needs to be very powerful, I need to buy everything, sound system, monitor and hardware, highest spec machine will cost nearly £3000 is that allowed, it makes no logical sense in spending cheap because it simply wont be able to cope with the latest software?

[MPwannadecentincome]

Your accountant can advise, but If you can justify it to HMRC then all you need is Director sign off from your Ltd Co!

Your accountant will advise about Capitalised expenditure.

[stek]

Hi there,

I don't see the point in spending low because I want it to last, plus I wish to run several virtual machines including a database so it needs to be very powerful, I need to buy everything, sound system, monitor and hardware, highest spec machine will cost nearly £3000 is that allowed, it makes no logical sense in spending cheap because it simply wont be able to cope with the latest software?

Sound system for a database? Hmm, interesting! 2gb dual HD gfx too?

You'd be better off with a server such as a Sun X-series or HP DL, will run all that even on a seccy hand one and use an ordinary PC to manage it.

[malvolio]

Your accountant can advise, but If you can justify it to HMRC then all you need is Director sign off from your Ltd Co!

Your accountant will advise about Capitalised expenditure.

Assuming it is for business use and not the latest iteration of WoW...

But "How much can I...?" is a bit of a dumb question. You spend what you need to spend for the job in hand: I use an Ultrabook rather than a cheapo tablet because while most of the time it's only reading emails, on occasion I need a desktop-spec portable PC.

[Brett at Nixon Williams]

There is no limit as to how much you can spend as such, so long as you can justify it as wholly and exclusively for the business then you should be ok.

As for the accounting treatment, if it will last more than and year and given it's cost it will likely be capitalised. Assuming you have not already used up your Annual Investment Allowance (AIA) you should still get 100% write off in the first year against taxable profits.

Brett

[stek]

There is no limit as to how much you can spend as such, so long as you can justify it as wholly and exclusively for the business then you should be ok.

As for the accounting treatment, if it will last more than and year and given it's cost it will likely be capitalised. Assuming you have not already used up your Annual Investment Allowance (AIA) you should still get 100% write off in the first year against taxable profits.

Brett

How much is the AIA? Reason I ask is my accountant is seemingly whinghing about the amount of proper server kit my Ltd buys, saying more or less the HMRC takes a dim view of buying too many servers - like they've got a clue and know a RISC from a CISC or POWERPC from MIPS. I buy them for a reason, there is no duality of purpose at all believe me, a stonked out PC I can understand their view, but a headless, graphic less, keyboard less and mouse less power sucker in my shed has no pleasure for stek personally I'm sure you can agree.

I think I did 3/4k last year on servers - i.e. not Apple or PC or laptops, almost all are going into colo, is that another Acc/HMRC battle in the offing?

So fukn annoying they seem to telling me my job, both the Accountant and HMRC...

[TheFaQQer]

How much is the AIA? Reason I ask is my accountant is seemingly whinghing about the amount of proper server kit my Ltd buys, saying more or less the HMRC takes a dim view of buying too many servers - like they've got a clue and know a RISC from a CISC or POWERPC from MIPS. I buy them for a reason, there is no duality of purpose at all believe me, a stonked out PC I can understand their view, but a headless, graphic less, keyboard less and mouse less power sucker in my shed has no pleasure for stek personally I'm sure you can agree.

I think I did 3/4k last year on servers - i.e. not Apple or PC or laptops, almost all are going into colo, is that another Acc/HMRC battle in the offing?

So fukn annoying they seem to telling me my job, both the Accountant and HMRC...

AIA is £250k this year and next - Understanding annual investment allowances | UK members | ACCA UK | ACCA

[stek]

AIA is £250k this year and next - Understanding annual investment allowances | UK members | ACCA UK | ACCA

Fuk me and I spent like 4k max and accountant is giving me shiit!

[rurffy]

Hi there,

I don't see the point in spending low because I want it to last, plus I wish to run several virtual machines including a database so it needs to be very powerful, I need to buy everything, sound system, monitor and hardware, highest spec machine will cost nearly £3000 is that allowed, it makes no logical sense in spending cheap because it simply wont be able to cope with the latest software?

Why would you want to spend that amount of money on a Home Lab? thats kinda too much. I built a home lab last year with total of about 800 pounds if i remember correctly. And high spec hardware -

I built the system from barebone - (google "Shuttle XPs"). My system is i5 intel processor with 32GB Ram and 2Tb Hard disk.

I also bought 2, 18" Monitor and a T stand .I run over 15 VMs at a go and system still responding alright.

In total i spent about 800 quid for all.

[Brett at Nixon Williams]

AIA is £250k this year and next - Understanding annual investment allowances | UK members | ACCA UK | ACCA

Good link - This makes it quite clear how this works, specifically regarding the maximum AIA and where the accounting period spans the change in AIA. In most cases this should not be an issue.

Brett