Need advice on starting first contract + laptop

[Rafd]

Hello

I have had a year off away from work and have just got back to the UK. I am in the final stages of negotiating a remote working contract directly with a previous employer. From what I can tell, I have a good chance of being outside IR35 as I am working from my own office with my own equipment so I am thinking that a limited co is the best bet. Any additional advice on this is welcomed. I have spent a long time reading and searching these very helpful forums but there are couple of questions I can not yet answer.

I need to purchase a laptop (sooner rather than later).. the laptop and a couple of monitors should cost over 2k together. What are the pros and cons of buying this before or after forming my company? From what I have read I could buy this personally in advance then sell it to my co on formation and reclaim VAT. As the tax year is close to end and I have not worked this year to date, are there benefits in claiming it as an asset and being able to spread the cost across into future years in which I should be earning more? Or am I not understanding limited co tax structure correctly? Can software costs also be claimed?

Thanks for your help in advance!

[northernladuk]

Get an accountant and speak to them so you start of on the right foot from the off. Not grabbing a few facts here and there. There are so many points that need covering in your post I don't think anyone will capture them all..

If you still want to look in the meantime use the search method as described below.its much better than the default option.
http://forums.contractoruk.com/welco...uk-forums.html

For example your formation costs for kit has a lot of hits. As will the 2k VAT question you need to ask.
https://www.google.co.uk/search?q=eq...ntractoruk.com

Lot of your own research to do yet...

P.s. When you do make sure you cover your IR35 base as well. I wouldn't be as confident with that assumption as you appear to be.

[Rafd]

True, speaking to an accountant will be the best choice but I'm not quite at that stage yet and am just trying to research in advance how things will work. To make my question a bit more focussed I could rephrase:

Can I purchase a laptop prior to formation then transfer/sell it to my co as a capital asset in some way? If so, does the invoice need to be under my company name or not?

I have done a lot of looking into IR35 and I guess it will really come down to what kind of contract arrangement and wording we can agree on so yes there is a question mark over this. I hope that WFH on my own equipment will help though.

Thanks

[northernladuk]

https://www.google.co.uk/search?q=bu...obile&ie=UTF-8

[Kenny@MyAccountantFriend]

Yes, you can purchase the computer equipment prior to forming the company and where applicable reclaim the VAT as well.

If bought prior to incorporation there is no company name to have purchase the items so would be in your personal name.

[Rafd]

Thanks for the help!

[Rafd]

Sorry to revive this thread but just wanted to double check before I pull the trigger on a laptop pre-formation. Is there any disadvantage to doing it this way rather than waiting?

Is it a good idea to purchase everything I require to set up my office before flat rate VAT registration in order to avoid the 2k threshold?

Thanks!

[mudskipper]

Sorry to revive this thread but just wanted to double check before I pull the trigger on a laptop pre-formation. Is there any disadvantage to doing it this way rather than waiting?

Is it a good idea to purchase everything I require to set up my office before flat rate VAT registration in order to avoid the 2k threshold?

Thanks!

Yes, I think that's often missed. You can claim back VAT on stuff purchased before VAT registration even below the threshold - I wish I'd known that. Might be worth seeing if you can pay a year's accountancy up front

[Rafd]

That's good to know.. being new to this I don't know how the timing works with company formation, expenses and VAT registration. For example, can I form a company, buy equipment and pay for accountant up front then register for flat rate VAT after the purchases but before my first invoice date?

[Jeremiah@RHJAccountants]

If you buy goods or services before you registered for VAT, you may be able to reclaim the VAT you paid on them.

You can generally reclaim VAT on goods you bought up to four years before you registered for VAT, and services you bought up to six months before you registered. Remember too that you may be able to backdate your VAT registration by up to four years although once your date of registration has been agreed with HM Revenue & Customs (HMRC), it cannot normally be changed.

You can do this even on the FRS VAT for your first VAT return only.

So the answer is yes.