Expensing my laptop is benefit in kind...

[eek]

I am on on inside gig and the client is not providing any laptops anymore - all access is now via your own equipment and VDI (Virtual Display via Citrix). My own laptop is quite old but more than adequate for my personal needs - however really struggling with the client's VDI set up requirements so I am going to have to upgrade for the sake of this job. In this instance its a Business cost directly related to the project. If I wasn't doing this gig I wouldn't have need to upgrade my laptop.
I am also with Parasol - as far as I understand it - the 15% which you previously would have paid at the end of the contract to keep the hardware is the amount that is the benefit in kind. However the 85% they pay you when you submit the receipt for the laptop comes out of your invoice value and is still free of income tax and NI.
It seems all to complicated so I am just not going to bother with claiming and pay for it myself.

What's complex about it

You buy laptop

You send invoice to parasol - they send you 85% of the money before dealing with the Tax calculations.

You pay the rest out of your final payment as you leave parasol

I can't see the complexity there

[gizzmo]

What's complex about it

You buy laptop

You send invoice to parasol - they send you 85% of the money before dealing with the Tax calculations.

You pay the rest out of your final payment as you leave parasol

I can't see the complexity there

Thats is not how it works now - previously you didn't have a benefit in kind hit on your tax bill, thus reducing your personal allowances etc. And I don't agree with the charge of 15% that Parasol take as a cut for processing your business costs

If the client isn't providing hardware then you should be able to offset the full amount - not just 85%

[eek]

Thats is not how it works now - previously you didn't have a benefit in kind hit on your tax bill, thus reducing your personal allowances etc. And I don't agree with the charge of 15% that Parasol take as a cut for processing your business costs

If the client isn't providing hardware then you should be able to offset the full amount - not just 85%

Parasol is doing the best it can to solve a problem for you that frankly isn't theirs to deal with (most umbrellas avoid this area like the plague for there be dragons if even a little bit is screwed up).

So a simple question:-

Is it still cheaper to purchase (i.e. you end up with slightly more money) using this scheme or is it cheaper to buy the laptop out of post tax income?

I suspect it's still the former....

[fidot]

How come we are over a two years since all this started and over a month since the legislation came in to force and people still say stuff like this?

That has been my experience

[northernladuk]

That has been my experience

Which has been the clients choice and nothing to do with your tax position. They also give them to outside contractors and to perms so hardly a bench mark for anything.