iPod touch as an expense

[FiveTimes]

Hmmm...

I ordered an iPod touch (for eldest child) last night on amazon but by mistake the default card was my business debit card.

So I email my accountant to ask whether to pay money back in or to take it out of the loan account,
she said its fine and could go through the books as HMRC issue podcasts, scope for emails etc and said it should be fine.

What do you lot reckon ?

[Clare@InTouch]

You told her it was personal and she suggested claiming for it anyway?

I'd say it's not claimable as it's personal, and even if weren't its not wholly and exclusively for business purposes (therefore BIK).

[BolshieBastard]

Hmmm...

I ordered an iPod touch (for eldest child) last night on amazon but by mistake the default card was my business debit card.

So I email my accountant to ask whether to pay money back in or to take it out of the loan account,
she said its fine and could go through the books as HMRC issue podcasts, scope for emails etc and said it should be fine.

What do you lot reckon ?

I'd be happy with what my accountant said rather than a load of barrackroom accontants on here (professional ones, excepted, ofcourse!).

[northernladuk]

I'd be happy with what my accountant said rather than a load of barrackroom accontants on here (professional ones, excepted, ofcourse!).

I wouldn't. You are ultimately responsible for your accounts not your accountant. If they told me to claim for something that is clearly not allowed I would personally not claim it. Yes in their experience it isn't worth worrying about and it savers the hassle of balancing it out correctly but it is still clearly wrong. Each to their own and all that but this would not stay on my books. Where it might be hassle correcting it it is a small amount of effort to make sure my accounts are correct and my conscience is clear...but I try to be almost anal about keeping my nose clean. When hmrc come calling I don't want any hassle, especially for the cost of an ipod touch.

[FiveTimes]

I can't say I'm happy about putting this through. I don't see the point in risking it for the sake of a £210 ipod.

[Old Greg]

Hmmm...

I ordered an iPod touch (for eldest child) last night on amazon but by mistake the default card was my business debit card.

So I email my accountant to ask whether to pay money back in or to take it out of the loan account,
she said its fine and could go through the books as HMRC issue podcasts, scope for emails etc and said it should be fine.

What do you lot reckon ?

I would clarify whether 'should be fine' means that you'll get away with it or that it is an allowable business expense to buy your child an iPod touch.

[northernladuk]

I can't say I'm happy about putting this through. I don't see the point in risking it for the sake of a £210 ipod.

I think this is totally right and if you are not happy don't do i. They are your accounts. Old Greg hits the nail on the head for me.

[stek]

Be interesting to know how much the BIK on an iPod Touch is? Is it like, four quid or some trivial amount?

[BolshieBastard]

I wouldn't. You are ultimately responsible for your accounts not your accountant. If they told me to claim for something that is clearly not allowed I would personally not claim it. Yes in their experience it isn't worth worrying about and it savers the hassle of balancing it out correctly but it is still clearly wrong. Each to their own and all that but this would not stay on my books. Where it might be hassle correcting it it is a small amount of effort to make sure my accounts are correct and my conscience is clear...but I try to be almost anal about keeping my nose clean. When hmrc come calling I don't want any hassle, especially for the cost of an ipod touch.

Just to clarify, clearly the OP's accountant is my accountant. The point I was making was if my accountant had given me that advice, I'd be happy with that rather than a forum's opinion.

TBH, if you have a good accountant, they wont tell you to claim something that's not allowable.

I've been with my accountant for nearly 15 years using 3 different ltd co's. I've never had any comeback from IR \ HMRC in this time (except for the MontP scheme which my accountant has no input to.)

Im aware they have won a couple of IR35 investigations, the most recent being concluded 3 months ago. They use Accountax (or someone!) as part of their strategy so, I dont think they'd give me poor advice on what is claimable (in fact, I know they wont because they recently gave me advice re a new mobi contract.)

If people want to use the barrackroom accountants on here to say I would \ wouldnt be happy with their accountant's advice, that's up to them. I know Im comfortable that the advice my accountant gives me. And, if my accountant had of told me as the OP's did that this wasnt an isse, that would be good for me.

[Old Greg]

Just to clarify, clearly the OP's accountant is my accountant. The point I was making was if my accountant had given me that advice, I'd be happy with that rather than a forum's opinion.

TBH, if you have a good accountant, they wont tell you to claim something that's not allowable.

I've been with my accountant for nearly 15 years using 3 different ltd co's. I've never had any comeback from IR \ HMRC in this time (except for the MontP scheme which my accountant has no input to.)

Im aware they have won a couple of IR35 investigations, the most recent being concluded 3 months ago. They use Accountax (or someone!) as part of their strategy so, I dont think they'd give me poor advice on what is claimable (in fact, I know they wont because they recently gave me advice re a new mobi contract.)

If people want to use the barrackroom accountants on here to say I would \ wouldnt be happy with their accountant's advice, that's up to them. I know Im comfortable that the advice my accountant gives me. And, if my accountant had of told me as the OP's did that this wasnt an isse, that would be good for me.

You are running your own business! Would you think that buying your child an iPod Touch is an allowable expense on your accountant's say so?