Company Laptop purchase

[Peoplesoft bloke]

My Co is buying a second-hand laptop from one of our directors. I assume the director won't (and indeed can't) charge VAT so I don't need to record a VAT component in this transaction?

[Bluebird]

My Co is buying a second-hand laptop from one of our directors. I assume the director won't (and indeed can't) charge VAT so I don't need to record a VAT component in this transaction?

If it's a personal sale [ ie not from a VAT registered entity, then no he can't charge VAT ]

[Peoplesoft bloke]

If it's a personal sale [ ie not from a VAT registered entity, then no he can't charge VAT ]

Thanks - thought so, much appreciated.

[FiveTimes]

If it's a personal sale [ ie not from a VAT registered entity, then no he can't charge VAT ]

what paper work is needed to show that the "sale" took place ?

[Pickle2]

what paper work is needed to show that the "sale" took place ?

I generally give my company a detailed reciept for anything like a laptop that I sell to it. Also worth printing out a few examples from ebay to show you are charging the going market rate for the laptop 2nd hand, and stapling them to the reciept in case you ever get the knock from hector.

[lnoton]

I generally give my company a detailed reciept for anything like a laptop that I sell to it. Also worth printing out a few examples from ebay to show you are charging the going market rate for the laptop 2nd hand, and stapling them to the reciept in case you ever get the knock from hector.

Can i ask, is this okay to do? As I have a 15" Apple Macbook Pro 2.33C2D 2GB that i bought before i set up a company. Now i pretty much use it for work all the time. Especially in the office im in that doesnt let me access googlemail etc.

What is the process? Do i just create a sales receipt and give it over to myself (Director)?

[r0bly0ns]

Yes it is definately OK to do.

A reciept will do fine, but you must sell it to the company for a 'reasonable' 2nd hand price.


If you bought it just before you set your company up, you may still be able to put the purchase through the company and expense the whole value - speak to an accountant.

[Peoplesoft bloke]

I generally give my company a detailed reciept for anything like a laptop that I sell to it. Also worth printing out a few examples from ebay to show you are charging the going market rate for the laptop 2nd hand, and stapling them to the reciept in case you ever get the knock from hector.

Thanks BTW Pickle - top tip about eBay sales - that helped me realise that the director was actually asking for a bit too much so we've agreed a lower price.

[PAH]

Don't forget depreciation on company assets where they are written down in value each year. I think after 3 years any hardware is pretty much worthless, regardless of what mugs are paying on ebay.