Second Laptop Expense

[rodor]

Hi all,

I've got a limited company which provides IT consultancy services (Software Testing). I am the only director and employee in the company. I've already purchased a company laptop 9 months ago. I am looking into purchasing a second laptop to be used as a replacement in case the first one gets broken. Would this be a legitimate expense, provided that it's an single person limited company which possesses 2 laptops?

Thanks

[northernladuk]

If you really think you can justify it then go for it. I mean really justify it.. to a bloke with a pot of lube that's gonna turn you inside out, not just to yourself.

That said, I'd be smelling a rat. If you are doing what you say then the 2nd laptop should stay in a box until the first one dies. Used for anything else would look like you've just been trying to kid yourself (and HMRC)

At the price of a top quality laptop it would be cheaper to lose a day's billing should the very worst happen and get one overnighted. Or just pop down PC world and get one that might not quite be as high spec. Unless you've got a lot riding on it spending 100's just in case your first dies doesn't look like good business sense on the face of it.

That's just me being a pessimist. Generally when someone comes up with some convoluted situation here they normally know the answer and are just asking hoping we will say it's fine, which generally we don't.

But, your call and your risk. If you REALLY need it as a spare and it makes financial sense then fill your boots. If there is any other reason and you might be giving it to the kids or whatever, at least be honest with yourself and just asses the risk that you 'might' get investigated over a few hundred quid.

Can you have two laptops in a LTD, of course. Will HMRC believe it's a 'spare'? Dunno.

Your call.

[northernladuk]

Ah.. I see from your posting history you are new to contracting. Just to be clear, having a second laptop just in case the first breaks is incredibly rare and is not general practice. I don't know anyone that does this, on here or in RL. I am sure there might be but on the whole we don't need to do this. Just so you know.

P.S. You are not an employee of your LTD.

[Old Greg]

My 1 man band has 2 laptops. One is easily portable, but even so I tend to leave it locked away overnight at client site to save the laptop and my back a daily train commute. I then have a chunky cheap laptop for use in the home office, which although heavy, I could carry in if the portable one dies - that's why I have a second laptop rather than a desktop. I tend to replace each one every three years so am buying a laptop every 18 months.

I am happy to defend this as a necessary business arrangement. Your plan smells a bit more fishy and smell is important.

[WordIsBond]

I have a backup. I can't afford to be down even for a day, and it would be more than a day because I'd have to get it setup and certain stuff installed. I'd lose at least two and probably three days of billing, as well as losing credibility. Not going to happen.

There's two questions here and they are distinct. First, are you buying it for the business or for other purposes? If it is for the business and personal use is only incidental, you can do it.

Second, is it a good use of your company's money? Even if you can do it and claim the expense, that doesn't mean it is actually a good idea. That depends on your business.

[craigy1874]

Ah.. I see from your posting history you are new to contracting. Just to be clear, having a second laptop just in case the first breaks is incredibly rare and is not general practice. I don't know anyone that does this, on here or in RL. I am sure there might be but on the whole we don't need to do this. Just so you know.

P.S. You are not an employee of your LTD.

Not an employee of his Ltd? How so? Have you seen the payroll records?

[TheCyclingProgrammer]

The only tests you need to meet are that it’s purchased wholly and exclusively for business purposes and because it will be in your possession as director, that any non business use is not deemed “significant”.

The latter test is usually deemed met by HMRC if it’s essential to do your job. It can also be met by simply not using it for anything non work related.

Beyond the above rules, try not to overthink it. Only you know if your business requires an additional laptop. Nobody here does and neither do HMRC and I’d suggest that HMRC aren’t interested in dictating what equipment a business should or shouldn’t buy unless you are obviously taking the mick.

[vwdan]

It could come to bite me, but I honestly tend not to worry too much about IT Purchases. To be frank, unless it's blatantly personal use (I.e., TV's and such), pretty much anything computery goes via my Ltd.

In some respects it's easier for me as I'm on the geekier / hands-on side of IT Contracting - I've got a big chunky garage lab and I've written and sold software etc so I honestly don't think I'd have trouble justifying anything I've purchased. Go to most senior architects desk in most companies and they'll have a variety of random kit on their desk or around the place

[TheCyclingProgrammer]

It could come to bite me, but I honestly tend not to worry too much about IT Purchases. To be frank, unless it's blatantly personal use (I.e., TV's and such), pretty much anything computery goes via my Ltd.

I have a similar approach. I don't take the piss, but if the hardware has a business purpose or its for the office (which is a separate garden office) then it goes through the business. If I couldn't justify it at all then it doesn't.

[Crossroads]

2? I have several...

A workstation in my (home) office.
A 15" laptop that I will cart to/from customer sites typically when working full days.
A 13" laptop when it will suffice - short customer meetings and the like and/or when I want to travel light.
An MS Surface for when I want to travel really light and/or a tablet form factor is more useful.

One more than one occasion having a backup/alternative has saved me - it isn't just a lost day, it is potentially damaged reputation or business not won.

Then again, I have a home lab with more cores, RAM and storage than some of my customers Production estates