Buying second hand computer hardware

[sy8111]

Hi all, Happy New Year!!!

If I want to buy second hand computer from individual, is it allowed to treat as expense, and what kind of document do I need to keep? What is normal procedure on this?

Thank you.

[Sockpuppet]

Receipts from wherever you're buying it from. Can't reclaim the VAT if its not from a VAT registered party. Other than that nothing.

Also pay the market rate for it. So no buying a 18 month old laptop from yourself as the as new market rate and trying to claim for it!

[TheFaQQer]

Receipts from wherever you're buying it from. Can't reclaim the VAT if its not from a VAT registered party. Other than that nothing.

Also pay the market rate for it. So no buying a 18 month old laptop from yourself as the as new market rate and trying to claim for it!

I didn't think VAT applied to second hand goods?

[sy8111]

Receipts from wherever you're buying it from. Can't reclaim the VAT if its not from a VAT registered party. Other than that nothing.

Also pay the market rate for it. So no buying a 18 month old laptop from yourself as the as new market rate and trying to claim for it!

Thanks for the confirmation. VAT is not applied and that is not my concern.

[ASB]

Hi all, Happy New Year!!!

If I want to buy second hand computer from individual, is it allowed to treat as expense, and what kind of document do I need to keep? What is normal procedure on this?

Thank you.

expense? Possibly, depends upon the value, it's anticipated lifespan and how your accountant views it.

Strictly it is an asset and subject to capital allowances (i.e. the relevant portion is depreciated annually providing the tax relief rather than 100% in year 1). The fact that it is an asset means it will be shown in the books as such. You are probably entitled to a 100% deduction in year 1 anyway so will get full relief in the year of purchase.

Capital allowances on plant and machinery | Business Link

[TheFaQQer]

expense? Possibly, depends upon the value, it's anticipated lifespan and how your HMRC views it.

FTFY - it's naff all to do with your accountant, and everything to do with HMRC.

[ASB]

FTFY - it's naff all to do with your accountant, and everything to do with HMRC.

True to a point. However if one's accountant takes the view that "everything under £250 is an expense" HMRC will generally not be problematic (but they can be).

HMRC do not give an exact definition of what will constitute an asset. However it not being consumed within a year is a reasonable guideline. This is, itself, problematic.

Do you include a £5 USB stick? Do you include a £2000 visual studio purchase?

Accounting standards and practices, though sometimes deviated from are relevant.

Edit: some HMRC words

http://www.hmrc.gov.uk/manuals/bimmanual/bim35005.htm
http://www.hmrc.gov.uk/manuals/bimmanual/bim35010.htm