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Expensing multiple laptops

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    Expensing multiple laptops

    Forgive me if this has been answered somewhere already, but I can't seem to find the answer to this particular question.

    I'm working on a new IT contract outside IR35
    They've asked me to provide my own computer equipment so I've converted my personal laptop into a work one.


    My question is how often can I claim laptops as an expense? Is it once per company year?
    • I bought laptop A some time ago (the personal one I just converted) have already claimed it as an expense for the past company accounting year.
    • I now decide to get a better machine for work this company year, laptop B and also would like to expense it.
    • Laptop A now becomes my personal machine again
    Do I lose part of my original claim on laptop A according to some deprecation of goods rule (eg. transfer 50% of the expensed money back to the company)?
    Or how do I go about this? Surely I can't be expected to keep the same laptop for ever.


    My accountant has being as useful as emailing back the 'if it's used wholly for business purposes...you can expense it', not answering the question.
    Last edited by PK2; 26 April 2022, 12:10.

    #2
    as many devices as you need for business purposes. As often as you need/want to buy them.

    Just make sure that if your company buys a personal one from you that it is for a fair market value.
    See You Next Tuesday

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      #3
      Originally posted by Lance View Post
      as many devices as you need for business purposes. As often as you need/want to buy them.

      Just make sure that if your company buys a personal one from you that it is for a fair market value.
      and your accountant has answered the question correctly.
      See You Next Tuesday

      Comment


        #4
        If your business is IT then as many as you like.

        The R&D wing of my Ltd Company has purchased several over the past year alone.

        Comment


          #5
          Originally posted by PK2 View Post
          I bought laptop A some time ago (the personal one I just converted) have already claimed it as an expense for the past company accounting year.
          When you bought it as a personal laptop, how much did you pay for it?
          How long after you bought it did you sell it to your company?
          How much did you sell it to your company for?
          {emotionless greeting}

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            #6
            Originally posted by Lance View Post
            as many devices as you need for business purposes. As often as you need/want to buy them.

            Just make sure that if your company buys a personal one from you that it is for a fair market value.
            1. That makes sense about buying at a fair market value (since the laptop has been bought some time ago and initially for personal use).
            2. It makes sense being able to expense as many laptops as needed for work, but what if I convert my previous one back to personal use though?

            Comment


              #7
              Originally posted by WTFH View Post

              When you bought it as a personal laptop, how much did you pay for it?
              How long after you bought it did you sell it to your company?
              How much did you sell it to your company for?
              Well ok, I got slightly ahead of myself for the sake of simplicity.
              I was going to expense it in the coming days (since I need to start filling in my self-assessment for 2021-22)
              It was bought last November, not a particularly expensive one, I think it was around £850
              • It didn't occur to me that I should sell it to the company at a fair value when claiming it as an expense.
              • I guess that means I would claim it as a recent expense as well (when I started using it for my new assignment, rather than when I first bought it).
              • To be honest my company was still active when I bought it and I used it for training & accountancy, so could argue that I needed it for business purposes from the start (although back then I was working inside IR35 but I still kept my company active).
              Last edited by PK2; 26 April 2022, 12:48.

              Comment


                #8
                Originally posted by TheDude View Post
                The R&D wing of my Ltd Company has purchased several over the past year alone.
                Ah that old wheeze again.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by PK2 View Post

                  Well ok, I got slightly ahead of myself for the sake of simplicity.
                  I was going to expense it in the coming days (since I need to start filling in my self-assessment for 2021-22)
                  It was bought last November, not a particularly expensive one, I think it was around £850
                  • It didn't occur to me that I should sell it to the company at a fair value when claiming it as an expense.
                  Why did it not occur to you? Did your accountant not offer any guidance? You would have struggled to justify it if you were inside anyway so maybe better you didn't.
                  I guess that means I would claim it as a recent expense as well (when I started using it for my new assignment, rather than when I first bought it).
                  You'd claim it at the cost your company bought it for at the time the company needed it. If you can justify it from the beginning then claim it, if you can only justify it from the time you started the assignment then claim it. Just need to look in to the fact you were inside when you bought it and it was a while ago now so that horse might have bolted. Just put it through the books at a reasonable price now and have done with it all.
                  • To be honest my company was still active when I bought it and I used it for training & accountancy, so could argue that I needed it for business purposes from the start (although back then I was working inside IR35 but I still kept my company active).
                  Did you provide this information to your accountant when asking what to do? Not sure you could justify a new laptop for training and accountancy while you are inside but that's gone now.

                  1. It makes sense being able to expense as many laptops as needed for work, but what if I convert my previous one back to personal use though?
                  You don't convert them. You buy and sell them back to the company. Nothing wrong with having multiple laptops if you work demands it. Nothing wrong with the company selling an under powered one if it needs to buy a new one to suit business needs.

                  You are over thinking all this and making it way more complicated than it needs to be.
                  Last edited by northernladuk; 26 April 2022, 13:14.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by PK2 View Post

                    Well ok, I got slightly ahead of myself for the sake of simplicity.
                    I was going to expense it in the coming days (since I need to start filling in my self-assessment for 2021-22)
                    It was bought last November, not a particularly expensive one, I think it was around £850
                    • It didn't occur to me that I should sell it to the company at a fair value when claiming it as an expense.
                    • I guess that means I would claim it as a recent expense as well (when I started using it for my new assignment, rather than when I first bought it).
                    • To be honest my company was still active when I bought it and I used it for training & accountancy, so could argue that I needed it for business purposes from the start (although back then I was working inside IR35 but I still kept my company active).
                    OK, can we have the full version of the story please.

                    You bought a laptop personally in November 2021, is that correct?
                    What make, model, etc is it?
                    6 months later you have been asked to provide a laptop for your contract. Is that correct?
                    You have sold it to your company already, or are you planning to?
                    How much did you sell it to your company for? Or how much are you planning to sell it to your company for?
                    When are you planning to sell it back to yourself?
                    Is this in any way related to your post over a year ago where "your friend" was planning to buy a high end MacBook then close the company down, and you were unaware that when you close a company, assets do not become free?

                    But if we take your current version of the story, you bought it for £850, you then checked on CEX for their selling price and discovered that it's worth £700 for you to sell it to your company.
                    So that's how much you sell it to your company for.
                    Your company keeps it for 6 months and CEX say it's worth £600.
                    That's how much you can sell it back to yourself for.

                    Now, if you tried to buy it personally for £850, then 6 months later sell it to your company for £850, then 2 months later sell it back to yourself for £600, then your accountant (and possibly the tax man) may have an issue. They'll also want to see receipts for things.
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