Equipment purchased for business purposes

[Taxless]

Read what is written

I am sorry but I was responding to a specific query, not providing a detailed paper on all of the ins & outs of letting space to your company.

If you have not posted the query you should not simply adopt the answers to suit your own facts, which may be quite different. If in doubt, post a specific query.

I know we all want to pay less tax but you have to be realistic on how far you can push things.

It is also the case that times are hard and people are looking to cut costs and a number of people seem to view cutting accountancy bills as a good place to start.

I would always advocate seeking professional advice (yes I have a vested interest) to ensure that what you are doing will stand up to HMRC scrutiny, but also the accountant may be aware of something that can help you legitimately reduce your tax exposure.

[northernladuk]

99%. I think your guessing there. Every contractor I know has a room set aside as an office. I paid to have mine turned into an office, so the company paid for that. Computer equipment, printers, paper, pens, stamps are all expensed. If you think like an employee then you'll always be an employee.

I also have a home office but I had this before I started contracting and it is where the all the equipment stays so it isn't in the living rooms. Anyone goes in there if they want to print, use a desktop etc. I have chatted to a couple of the guys here and they are the same. None of them are dedicated and would meet the wholly rule.

I also know people who are not contractors with the same set up.

Let's be fair here I am being a pedant based on Taxless comments around letting it to yourself and commercial rates, sharing bills and the Capital Gains comments. For the £50 a month situations then it is fine.

I still think my guestimate of people with wholly use office for business purposes only is close.

[TheCyclingProgrammer]

So long as they are used solely for the business and not for personal use, you just claim the amount you paid for them to your co.

Not quite...private use of business equipment is fine as long as that use is "not significant". Which basically means that the main purpose for you buying the equipment is that you need it to run your business.

HM Revenue & Customs: Homeworking

"Not significant" explained in detail:

http://www.hmrc.gov.uk/manuals/eimanual/EIM21613.htm