Process of company buying my personal laptop

**BrilloPad** · 18 April 2019, 07:12

Personally I just bought a new laptop for company use to make it easier. They depreciate in value so quickly.

**Lance** · 18 April 2019, 07:19

raise it, at fair value, as an expense.
Then class it as a computer equipment purchase.

I did this whjen I first started, but it was for over £2,500 (laptop, printer, servers, PC etc.).

If it's for a £300 laptop it probably isn't worth it. Remember that fair value has to be justified and in general take 33% of the value every year.

**Hobosapien** · 18 April 2019, 07:33

This is usually done when setting up the Ltd and sorting out kit, which can include purchasing items from those setting up the business.

Your accountant is probably saying it's not worth it if the value is low as it will likely increase paperwork and therefore accountancy fees for things like annual accounts and the depreciation write off over several years, which is how kit like this is treated so eventually it is worthless and can be 'disposed' without remuneration back to the company.

As said, it's usually worth it for new kit when the Ltd may also be able to reclaim the VAT.

**Alchemy Accountancy** · 18 April 2019, 08:51

Originally posted by password View Post

Hello

So, I know the usual route is to ask my accountant but.. I did ask my accountant about my company buying my personal laptop as it's literally just used for work these days -- they said it was a more hassle than it was worth and just not to bother. I am using FreeAgent and would have thought they would have catered for this.

Well this query is just to double check how much hassle it is.

So, what is the process and HMRC rules for a company buying IT equipment (Laptop) from company directors?

Anybody done it?

Thanks

If you are planning on introducing an asset into the company that has been used elsewhere previously (e.g. owned personally), you should use the market value of the asset and the purchase would not qualify for annual investment allowance. However you can still claim a writing down allowance, which will spread the same deduction against your taxable profits over a few years, and it is a way of getting cash from the business without using dividend allowances.

I'd say that unless the market value is very low then it is worth doing for the 2 minutes of your time that it will take to record in FreeAgent.

**WTFH** · 18 April 2019, 08:56

If it were me and the personal laptop was more than a year old, I'd get the company to buy a new laptop with a warranty, etc. Then sell my old personal laptop on eBay and keep the cash for it.
That way you get a new laptop with a full warranty, etc, and you get the cash for your old one.

...although based on previous posts, is there anything you're not telling us, or have you had some idea that makes you think you can make a profit by buying things personally then selling them to your company?

**Maslins** · 18 April 2019, 09:59

Adding to what others have said, remember you personally aren't VAT registered. Therefore even if VAT was payable on the initial purchase of the laptop from third party supplier, you couldn't reclaim that as you're not VAT registered. Equally if now you personally are selling the laptop to your company, you won't charge your company VAT, so there's no VAT for your company to reclaim.

Can't see all the facts from this thread, eg my suggestion would be different if you bought a £2.5k Macbook a month before incorporating, but in most of these kinds of situations I'd agree with your accountant.

**northernladuk** · 18 April 2019, 10:05

Originally posted by password View Post

Well this query is just to double check how much hassle it is.

Would you not be better checking what the benefits to you are to see what level of hassle is worthwhile?

**TheCyclingProgrammer** · 21 April 2019, 10:32

Another hassle is that if the value is worth less than £1k then it may qualify for relief in the first year under the small pools allowance however FreeAgent does not support this so you’d be left with a capital asset on your books with FreeAgent claiming WDA on it each year (it will never be reduced to zero).

**password** · 22 April 2019, 13:43

Thanks guys.

I guess it's not worth it really.

No real scheming going on here, I just read a bunch of stuff in various places about how this was not an uncommon practice.

Ill just buy new computer through the company when time comes.

Thanks.

Process of company buying my personal laptop