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Legitimate Expense or not?

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    Legitimate Expense or not?

    so my wifi router finally decided to drop dead and as I am working from home for forseeable future until at least january 2022 do people think getting a reliable wifi access point for my house would be something I can claim as a expense even though it will deffo be used for personal use also?

    #2
    No.

    Comment


      #3
      Yes.

      Comment


        #4
        Yes.

        To qualify that..... Replacing your home broadband router that has failed would not be a business expense.
        Buying a router, to extend the home broadband line to your home office is a valid business expense.

        Both describe what you are doing. One is claimable the other isn't. It's about perspective. I replaced the provider supplied router with a business router, and mesh WiFi as the provider supplied onw, whilst valid for home use, didn't allow the features I need for work.
        See You Next Tuesday

        Comment


          #5
          This is for an existing broadband connection that is not paid for by the company so I cannot see how it would meet the wholly and exclusively test.

          Comment


            #6
            Originally posted by jamesbrown View Post
            This is for an existing broadband connection that is not paid for by the company so I cannot see how it would meet the wholly and exclusively test.
            why is a router different to a computer? It's not really is it? It doesn't have to meet that test IMO. It's not like a desk, or a chair, or a car.
            Personal money pays for the broadband line, that's a given already. The IT devices connected to it are different.
            Perhaps my interpretation is a bit liberal, but I needed faster, more reliable WiFi in my office so the business paid for that.
            See You Next Tuesday

            Comment


              #7
              Yes, I see it as an extension of the attached and you may need to consider a BIK

              https://www.accountancyoffice.co.uk/...band-expenses/

              Can you reclaim the cost of home broadband?

              Yes you can – but there are restrictions as you would expect. The EIM01475 guidance from HMRC’s website is useful here.

              Limited Companies

              Company contracts and pays for the broadband service

              If a broadband contract is undertaken in the name of a limited company and the service is provided at the home of a Director or employee but paid for directly by the company, the monthly broadband cost is a tax deductible expense for the company for corporation tax purposes. If it is not possible to breakdown work and private usage, HMRC accept that providing any private use is insignificant there is no taxable benefit for the employee.

              If the broadband connection is used for a mixture of business and personal use then a benefit in kind will apply with the full amount paid by the company becoming taxable on the individual.

              Comment


                #8
                Originally posted by Lance View Post

                why is a router different to a computer? It's not really is it? It doesn't have to meet that test IMO. It's not like a desk, or a chair, or a car.
                Personal money pays for the broadband line, that's a given already. The IT devices connected to it are different.
                Perhaps my interpretation is a bit liberal, but I needed faster, more reliable WiFi in my office so the business paid for that.
                It isn’t, necessarily, but it’s easy to justify a computer as wholly and exclusively for the purposes of the trade. A gaming computer (one purchased for personal use) wouldn’t be. It isn’t a “given” that the broadband line is a personal one, but the OP notes that theirs is a personal one. Adding a dedicated business line is a legitimate business expense and would make it easier to justify any related equipment as meeting the test. If you feel as though you can meet the test, knock yourself out, but I wouldn’t feel comfortable with this one.

                Comment


                  #9
                  Originally posted by ladymuck View Post
                  Yes, I see it as an extension of the attached and you may need to consider a BIK

                  https://www.accountancyoffice.co.uk/...band-expenses/
                  is an additional router part of the the home broadband? Where does the home broadband terminate and the home office start?
                  I could equally keep the provided router for home use and use the company router for the office. Where does that fit?
                  This is a very grey area to my mind.

                  I pay personally for the service to the xDSL socket and from there it could be either. If I am asked about the router by HMRC it is "for the purposes of extending my personal home broadband to the office". Which is true, although with a tiny spin. *Perspective*
                  See You Next Tuesday

                  Comment


                    #10
                    Of the three accountants I had not one of them advised claiming broadband. Personal use far exceeds business and every home needs one. I'm sure other accountants on here have also said no to broadband in most cases.

                    Just the fact that he is replacing his personally bought home one says it for me. Replacing a home one for a work one when nothing has changed?

                    It's a no from me as well.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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