Purchased laptop while overseas - can i claim as an expense?

[dcx]

Hi,

I was overseas for leisure and purchased a laptop that I will use for work purposes? Is it to possible to claim as a work expense since it wasn't purchased in the UK?

Thanks

[TheCyclingProgrammer]

I don't think where you bought it from is relevant; why do you think it is?

The more pertinent question probably ought to be: did you purchase it in the company's name? Ideally directly through the company but even if you paid for it out of your own pocket, did you get an invoice in the company name?

If not, then the laptop belongs to you, not your company, so I wouldn't have thought it could claim it as a capital asset. You could keep it in your name and expense claim it - YourCo would be able to offset the expense payment against its corporation tax bill - but there *might* (not certain) be personal tax implications.

Or you could sell the laptop to the company. This should allow the company to treat it as a capital asset but I'm not sure if there are other tax implications of this. I don't think you can claim AIA on second-hand assets.

You ought to talk to your accountant about the best approach.

[stek]

Come on, who's sockie is this?

[dcx]

I don't think where you bought it from is relevant; why do you think it is?

The more pertinent question probably ought to be: did you purchase it in the company's name? Ideally directly through the company but even if you paid for it out of your own pocket, did you get an invoice in the company name?

If not, then the laptop belongs to you, not your company, so I wouldn't have thought it could claim it as a capital asset. You could keep it in your name and expense claim it - YourCo would be able to offset the expense payment against its corporation tax bill - but there *might* (not certain) be personal tax implications.

Or you could sell the laptop to the company. This should allow the company to treat it as a capital asset but I'm not sure if there are other tax implications of this.

You ought to talk to your accountant about the best approach.

Thanks for the info. Yes, I purchased it in the company's name, but from a personal account.

[dcx]

Come on, who's sockie is this?

[TheCyclingProgrammer]

Thanks for the info. Yes, I purchased it in the company's name, but from a personal account.

If you have an invoice in the company name, then you should be fine - you've paid on the company's behalf rather than yours and the company owes you the money back. Your company can reimburse you and you shouldn't need to report it on your P11D as its a company expense rather than an expense you incurred personally.

The laptop should be fully tax deductible assuming it passes the wholly and exclusively test, which I'm assuming it does. You can treat it as a capital asset.

Again, your accountant should be able to confirm.

[dcx]

If you have an invoice in the company name, then you should be fine - you've paid on the company's behalf rather than yours and the company owes you the money back. Your company can reimburse you and you shouldn't need to report it on your P11D as its a company expense rather than an expense you incurred personally.

The laptop should be fully tax deductible assuming it passes the wholly and exclusively test, which I'm assuming it does. You can treat it as a capital asset.

Again, your accountant should be able to confirm.

Thanks, I 'll call them tomorrow

[TheCyclingProgrammer]

Thanks, I 'll call them tomorrow

No problem. It's easiest to just think of things like this as a temporary directors loan from you to the company; you could even show it that way in your books. When the company reimburses you it's just repaying you from your DLA.

[ContrataxLtd]

I don't think you can claim AIA on second-hand assets.

I think everythings been covered quite nicely in this thread, just picking up on the point above though. Normally you can claim AIA on second hand assets i.e. the company buying a second hand laptop off eBay, however, where you purchase an asset off a connected person AIA is restricted so the company buying a second hand laptop off the director does not qualify for AIA, just normal WDA.

The purchase the OP has made should qualify for AIA thus gaining a 100% deduction for tax purposes in the year of purchase (assuming it was used for business that year).

Martin
Contratax Ltd