Buying stuff for a home office

[d000hg]

Surely what a company spends its money on is its own business... d000hg Ltd could spend £10k on chocolate covered monkeys, no?

But anyway say the company buys a big plasma, "for the director's office". What actually happens if HMRC don't like it? Can a company buy non-company stuff and not write it off, just choosing to spend their money on stuff?

[SueEllen]

Surely what a company spends its money on is its own business... d000hg Ltd could spend £10k on chocolate covered monkeys, no?

But anyway say the company buys a big plasma, "for the director's office". What actually happens if HMRC don't like it? Can a company buy non-company stuff and not write it off, just choosing to spend their money on stuff?

Nope. It's a BIK and you will be taxed personally on it.

Some light reading for you -
Wholly & exclusively: duality of, or non-trade, purpose: non travel topics

Wholly & exclusively: duality of, or non-trade, purpose: remuneration, etc

(None specifically cover the TV but are interesting)

[Wanderer]

Surely what a company spends its money on is its own business... d000hg Ltd could spend £10k on chocolate covered monkeys, no?

Sure it can. It's just that you can't claim tax relief on it and if it's for your personal use then it's a benefit in kind so you pay PAYE/NI on it.

But anyway say the company buys a big plasma, "for the director's office". What actually happens if HMRC don't like it? Can a company buy non-company stuff and not write it off, just choosing to spend their money on stuff?

Sure, if you are the company director then you can make the company can do anything you like! It's just that if you get investigated by HMRC then you will have to pay the tax due and a penalty.

[hyperD]

But surely your plasma screen is on promoting your company in a company made video using your company bought software for your clients while they sipp your company bought coffee sitting on your company bought furniture while waiting to see you, the director?

Think like a business.

Then pay the BIK after a nasty inspection