Buying a new laptop

[GillsMan]

MyCo Ltd was incorporated in August last year. At the advice of my accountant MyCo Ltd purchased a laptop from me for just under £500 (market rate) as it was being used wholly and exclusively for work.

I now need a new, faster laptop due to the work I'm doing on it. I've seen one for £750 I want to buy before the VAT goes up. Anything I should bear in mind before buying it? I assume, with two laptops, this means MyCo Ltd has more assets which affects tax or something.

Am I free to just go ahead and buy the new laptop do you think?

[Fred Bloggs]

Yes.

[Clare@InTouch]

Your company can buy the laptop. The whole cost will reduce you profit in the year so you'll pay less tax - £750 will effectively mean a saving of £157.50 (which is 21% of the cost).

Note that the asset may remain on the balance sheet of your accounts, but for tax purposes it will be written off in full.

[malvolio]

And since it's a business purchase, the VAT is irrelevant, isn't it... unless you're really desperate to gain £13

[GillsMan]

Lovely, cheers all. Lovely shiny laptop on order to arrive tomorrow. *Excited*

[SueEllen]

Lovely, cheers all. Lovely shiny laptop on order to arrive tomorrow. *Excited*

Your easy to please.

My company brought me lots of technical goodies in December. Well I had an accident with my very old laptop.........

[GillsMan]

Your easy to please.

My company brought me lots of technical goodies in December. Well I had an accident with my very old laptop.........

I am a computer geek. I almost salivated when I ordered to GTX 460 GPUs to run in SLI.

[Spacecadet]

Get a laptop that's over £2000, then you can claim the VAT back

[SueEllen]

Get a laptop that's over £2000, then you can claim the VAT back

Why?

If you don't need a £2000 laptop bundle then it makes no business sense to spend that much money on the laptop.

[Scrag Meister]

Why?

If you don't need a £2000 laptop bundle then it makes no business sense to spend that much money on the laptop.

You are obviously not a techy and excited by hardware , it's ok I understand why you'd want to spend £2k, great tech and get the vat back.

:-)

My next shopping list is going to be in the region of 4k.

My 2 laptops that I bought 3.5 years ago totalled about 3.5k. 17.5% vat back, 21% CT saved.

If you're going to spend £1700 you may as well spend 2k and save the VAT as well.

Its an investment to help in the earning of 120k+ a year. A small %age IMHO.

I am a computer geek. I almost salivated when I ordered two GTX 460 GPUs to run in SLI.

That's 2 of us then. I recently bought a GTX 470, only the one though, when my 8800GTX died just outside warranty.

What model laptop did you go for in the end?