New laptop

[JRCT]

I've used my personal laptop for business also for the past 2 years. It's dead, so I need to replace it. Practically, I want to use it for both personal and business - probably about 50/50. Can I still claim for the laptop, buy it through the company etc? What's the best way to do this?

I don't need anything heavy for work and a normal laptop will suffice.

[Clare@InTouch]

If it's bought for business use and private use is not significant then there's no benefit in kind. If private use is significant then you'll be taxed on 20% of the value as a benefit.

HM Revenue & Customs: Computers loaned to an employee

The meaning of significant can be thought of in terms of:

For example, where a computer is provided by an employer because it is necessary for an employee to be able to carry out the duties of the employment either at home, or whilst travelling or at work, it is highly unlikely that any private use made of that equipment will be significant when compared with the business need for providing the computer in the first place

EIM21613 - Particular benefits: accommodation, supplies and services: meaning of not significant use for private purposes


Keep in mind that if it costs over £2,000 then you'll be able to claim the VAT back if you're flat rate registered. If it's less than that, it may be worth checking a package deal that tips you over the limit.

[TheFaQQer]

See HMRC EIM21613 which specifically discusses laptops as an example (number 3 and 4):

3. Management consultant
A management consultant working for a consultancy firm works largely from home. She spends a high proportion of her time visiting customers, and occasionally attends a meeting at the employer’s offices.

The employer provides her with a laptop computer for business use because on the days when she works away from the office, access to a computer is still absolutely essential to her job. Occasionally she uses the laptop for private purposes and she has two children who are allowed to use the laptop for accessing the Internet to help with their school homework and for playing computer games and downloading music.

The amount of time the laptop is used by the consultant for business use during the day is probably about the same as that spent on it in the evening and at weekends by her children. But the sole reason that she has been provided with the laptop is for business use, for which purpose it is essential, and its primary purpose is for the business use. The private use is secondary to this and is therefore not significant, regardless of the amount of time spent on private use. The exemption in s316 applies.

4. Financial adviser
An employee for a financial advisory firm chooses to work at home every Friday. The employer provides a laptop computer for the employee to take home. It is not an essential part of his job to work from home on Fridays, but since the employer agrees to this working pattern, the laptop is required to enable the employee to do his job. The amount of time spent on the laptop for business use on Fridays is roughly equal to time spent at other times of the week on personal use of the laptop.

The sole reason that the laptop is provided is to enable the employee to work from home on Fridays. It is essential for this purpose. Private use of the laptop is secondary to this primary purpose and is therefore not significant. The exemption in s316 applies.

(I found this information by typing "hmrc expenses laptop" into Google and following the first link...)

[northernladuk]

I assume you don't have an accountant as you have missed a trick for the last two years.

[Platypus]

Put it thru the business and if the taxman ever asks tell him that personal use is not significant.

[Old Greg]

I assume you don't have an accountant as you have missed a trick for the last two years.

Maybe his personal laptop is four years old and he had no need to replace it.

[northernladuk]

Maybe his personal laptop is four years old and he had no need to replace it.

What?

[Old Greg]

What?

Never mind.

[SueEllen]

Never mind.

So you can still sell it to the business.

[kal]

So you can still sell it to the business.

+1 Exactly what I did, work out the current market value and sell it to your company, that was 2 years ago and laptop is 4 years old now, still going but starting to creak under the pressure... new laptop is a toss up between the Dell XPS and obligatory Macbook, my hatred of Windows 8 is making me lean towards the apple.