Need advice on starting first contract + laptop

[Rafd]

Sorry, zombie thread here.. a couple more questions:

I am also considering buying a desktop which I would build myself. How would the sale of this to MyCo after formation work as the receipts will be for separate components probably from different sources?

Assuming I buy equipment now and MyCo is formed within this month will I be able to transfer the equipment to MyCo at the full price I paid? How does this work with VAT?

Thanks again!

[Bluespider]

You can reclaim any costs incurred directly for the business for the year prior to formation, as long as you have the receipt. This will be offset against your first years profit.

You can only claim the VAT back on purchases of 2k or more if you are on the FR VAT scheme I believe, so that means you would need to buy all the components from one place on one invoice and it be greater than 2k.

[Rafd]

Thanks for the reply, I believe I can delay flat rate registration long enough to make this first VAT claim but I'm not sure.

[TheFaQQer]

You can reclaim any costs incurred directly for the business for the year prior to formation, as long as you have the receipt. This will be offset against your first years profit.

It's seven years - any expenses incurred for the purpose of trade up to seven years before trading can be reclaimed, as if they were purchased on the day of trading.

Corporation Tax Act 2009, Section 61

You can only claim the VAT back on purchases of 2k or more if you are on the FR VAT scheme I believe, so that means you would need to buy all the components from one place on one invoice and it be greater than 2k.

You won't be on the FRS from day one of VAT registration, though, so this wouldn't apply.

You can claim back the VAT element on products bought in the previous four years and services received within the previous six months of VAT registration.

HMRC VIT3200

[MrMarkyMark]

I need to purchase a laptop (sooner rather than later).. the laptop and a couple of monitors should cost over 2k together.

Thanks for your help in advance!

I can heartedly recommend one of these, obviously, duel monitors will cost extra:-

[VectraMan]

I am also considering buying a desktop which I would build myself. How would the sale of this to MyCo after formation work as the receipts will be for separate components probably from different sources?

Assuming I buy equipment now and MyCo is formed within this month will I be able to transfer the equipment to MyCo at the full price I paid?

Don't think of it as selling the equipment to YourCo. It's YourCo's equipment, and always was. In effect you've lent YourCo. the money to pay for it, and once YourCo. has the money it pays you back.

How does this work with VAT?

The above seems to suggest that even if you join the FRS from day one you can reclaim the VAT on purchases <£2K if they were made before the start date. Is that true? That doesn't sound right.

You won't be on the FRS from day one of VAT registration

I was!

[Rafd]

Looks like it ticks most of the boxes... but does it support dual 4k displays?

[Yonmons]

[QUOTE=Rafd;2194334]I am also considering buying a desktop which I would build myself. How would the sale of this to MyCo after formation work as the receipts will be for separate components probably from different sources?

QUOTE]

Blimey I thought the age of "build your own" had long since gone, Dell and et all killed that off with cheap ready to go/name your spec machines.

[SimonMac]

[QUOTE=Yonmons;2194720]

I am also considering buying a desktop which I would build myself. How would the sale of this to MyCo after formation work as the receipts will be for separate components probably from different sources?

QUOTE]

Blimey I thought the age of "build your own" had long since gone, Dell and et all killed that off with cheap ready to go/name your spec machines.

My money is that he will accidentally drop in a high end gaming GPU, why else would you need a laptop and a desktop

[TheFaQQer]

My money is that he will accidentally drop in a high end gaming GPU, why else would you need a laptop and a desktop

I use both - high-end (or it was) desktop machine for WFH (like now), and a chunky high-spec laptop (or it was) when I have to go to client site.

I bought the laptop when I needed to go overseas with one, and it;s hardly been used since.