Write off of hardware b4 closing Ltd

[SlipTheJab]

So I have a MBP which I bought in June 2015 am I right in saying if I wait until June 2018 its effectively worth nothing to the company and I can just 'ave it'. Also if I was to buy a new iPhone/iPad now through the Ltd can I just sell it to myself in June next year for a cut price (like 30/50% off)? ... NLUK accountant has been asked awaiting response ...

[Willapp]

IANAA but I believe if the standard 25% depreciation rules apply then if you buy an iPhone now for £500 then sell it to yourself in a year, you'd have to pay your company £375 for it as that would be its current depreciated value. I don't believe you're allowed to choose what price you sell it for, if you then sell it at a loss.

[TheCyclingProgrammer]

The MBP probably still has a reasonable market value so strictly speaking you should pay YourCo market value for the laptop or declare it on your P11D as a BIK. You will also need to account for VAT on the sale of VAT registered.

[SlipTheJab]

The MBP probably still has a reasonable market value so strictly speaking you should pay YourCo market value for the laptop or declare it on your P11D as a BIK. You will also need to account for VAT on the sale of VAT registered.

Its worth 800 ish right now, my question is after 3 years on the Ltd books is it just written off? I would rather not buy as I am getting shiny new MBP as part of my perm role so I guess my Ltd will have to sell it on eBay?

[SlipTheJab]

The MBP probably still has a reasonable market value so strictly speaking you should pay YourCo market value for the laptop or declare it on your P11D as a BIK. You will also need to account for VAT on the sale of VAT registered.

If I don't buy it what happens to it? Do I wipe it and bin it? Ebay it? Auction?

[northernladuk]

If I don't buy it what happens to it? Do I wipe it and bin it? Ebay it? Auction?

:

[TheCyclingProgrammer]

If I don't buy it what happens to it? Do I wipe it and bin it? Ebay it? Auction?

Sure, bin the laptop worth £800. I'm sure HMRC will believe you if they ever ask.

You can certainly sell it. Sell it however you like, but you'll still need to account for VAT on the sale.

Also worth noting, if you bough the laptop and reclaimed the VAT on the flat-rate scheme (as it was part of a single purchase over £2k) then the sale should be accounted for outside of the FRS too.

What I don't understand is...why can't you just keep using it, whilst it remains the property of YourCo? Is the real reason you want it so you can flog it?

[WTFH]

What I don't understand is...why can't you just keep using it, whilst it remains the property of YourCo? Is the real reason you want it so you can flog it?

From reading elsewhere he's thinking about closing down his company as he is taking a permanent role.

[TheCyclingProgrammer]

From reading elsewhere he's thinking about closing down his company as he is taking a permanent role.

Then in that case, won't the laptop become OP's property as part of any capital distribution (subject to CGT on market value I assume, but cheaper than accounting for VAT and tax if sold by the company)?

[Scruff]

If you drop it and it breaks, then it's worthless, Shirley?