Can I offset the cost of a 3d printer?

[wanstronian]

Hi, my business is in IT consultancy, not manufacture. But I thought it would be fun to be able to 3d print some merch - key rings etc. so I was thinking about buying a 3d printer on the business account and offsetting the cost. However I would also use the printer for personal use.

Can anybody advise whether this is "safe" in the eyes of HMRC? It feels like it might be questionable.

Thanks
W

[malvolio]

Pretty sure it would fail the "wholly and exclusively" test. Phones and laptops (and probably conventional printers) are allowable as genuinely dual purpose, but a 3d printer is not necessary for the performance of your fee earning work as described.


( BTW I hate the word "merch", it's lazy and ugly!! )

[northernladuk]

Does your IT consultancy earn revenue from 'merch'? No. So no.

If you sell said stuff you could offset it against that business but the question as to whether you can offset it against your IT company is pretty black and white.

[hobnob]

Does your IT consultancy earn revenue from 'merch'? No. So no.

That's actually an interesting question. I've thought about having some promotional items (branded merchandise), e.g. biros with my company name on them. I wouldn't be selling them (i.e. no direct revenue) but the goal would be to bring in extra business, so I believe that would be allowable as a business expense (listed as advertising).

In this case, I don't think that the direct lack of revenue is the issue. It's more the price disparity: it would be much more cost effective to pay someone else to make the keyrings for you.

Even then, I'm not sure whether that's conclusive. If I bought a laser printer for MyCo, I think that would be a justifiable expense, even if I only print a few pages each year (and therefore it would be cheaper to go to the local library).

I personally wouldn't do this, because it sounds like the main motivation is "wanting a new gadget to play with". However, there are some situations where this might be a sensible choice.

[northernladuk]

That's actually an interesting question. I've thought about having some promotional items (branded merchandise), e.g. biros with my company name on them. I wouldn't be selling them (i.e. no direct revenue) but the goal would be to bring in extra business, so I believe that would be allowable as a business expense (listed as advertising).

In this case, I don't think that the direct lack of revenue is the issue. It's more the price disparity: it would be much more cost effective to pay someone else to make the keyrings for you.

Even then, I'm not sure whether that's conclusive. If I bought a laser printer for MyCo, I think that would be a justifiable expense, even if I only print a few pages each year (and therefore it would be cheaper to go to the local library).

I personally wouldn't do this, because it sounds like the main motivation is "wanting a new gadget to play with". However, there are some situations where this might be a sensible choice.

In another world this would be a very good point but I was trying to cut through the BS to the reality of the situation. A one man band does not need a couple of hundred quid 3d printer to print things 'for fun' to aid sales. We all know it so was not going to go in to the facts above to help the OP justify it when they can't. We've seen endless questions like this where someone tries justify things because businesses do it so why can't they. Because they are a one man band, don't need that item and are grasping for straws.

[edison]

In another world this would be a very good point but I was trying to cut through the BS to the reality of the situation. A one man band does not need a couple of hundred quid 3d printer to print things 'for fun' to aid sales. We all know it so was not going to go in to the facts above to help the OP justify it when they can't. We've seen endless questions like this where someone tries justify things because businesses do it so why can't they. Because they are a one man band, don't need that item and are grasping for straws.

Maybe we just need a sticky titled '"Can I offset the cost of <x> - the answer is no"

[PerfectStorm]

What you're seeing in this thread is contractor theorists who aren't taking into account contractor reality.

You would almost certainly be fine where you can evidence the production of the materials, were it called into question.

[northernladuk]

What you're seeing in this thread is contractor theorists who aren't taking into account contractor reality.

I'm not sure it's so theorist when we work in the same area and know exactly how useful 'merch' is. I'd say its fact of the legislation based backed up with anecdotal evidence.

You would almost certainly be fine where you can evidence the production of the materials, were it called into question.

I don't think so. They won't go away when you produce one keyring. I assume the OP would be trying to put all their materials through the company as well so when they've bought thousands of feet of filament and they have a key ring and a fidget spinner to show for it they are going easily work out the fun/business split. HMRC aren't stupid.
The OP isn't being honest with us and we know it, well most of us. They want to have fun with it. How many keyrings are they going to print vs endless fun designs from the web and what have you. If the OP gave you the reality then you'd know, but they never do when they have to lie to try justify it to us so we can justify it to them.

It's the same old argument we see like an 82" TV for android testing. It sits in your front room but you test the odd android app or whatever. The personal/business split is pretty bloody obvious.

[courtg9000]

Just trust me on this, if it is actually for "merch"/marketing giveaways.
Its better to buy the merch in.
Cheaper at the end of the day and a lot less hassle oh and the end product is a lot more professional.

[northernladuk]

Just trust me on this, if it is actually for "merch"/marketing giveaways.
Its better to buy the merch in.
Cheaper at the end of the day and a lot less hassle oh and the end product is a lot more professional.

But no fun!!