Best way to pay for a 2K+ laptop via Limited when on the VAT Flat rate scheme.

**pmeswani** · 17 July 2010, 10:10

Originally posted by eliquant View Post

My laptop packed up and I want a new one, I'm thinking of one of those Sony Viao ones. I've read the HMRC website HM Revenue & Customs: Flat Rate Scheme for VAT and it does state that I can purchase one and claim back the VAT.

But the question is what is the best way of purchasing this ? is it advisable to buy it straight via my personal credit card (no company credit card) and then supply the receipt to my accountant for processing claiming the VAT back ?

Will the VAT I claim back just be given back to me in the form of a cheque addressed to my company by HMRC ?

thanks for any advice (not I don't claim anything back so this is my first claim).

AFAIK as long as the invoice has your Ltd Co name stated, it should be ok to pay via your CC.

**doodab** · 17 July 2010, 10:47

Buy it on your card, ensure you get a VAT receipt.

Claim the full amount back from your company as an expense.

The VAT is deducted from the amount due to HMRC on your VAT return. If you aren't invoicing then this will mean they owe you money and they will send you a cheque, otherwise you just pay them less for the relevant quarter.

**TheFaQQer** · 17 July 2010, 12:09

Get a company credit card or debit card. Pay for it on your company card, then claim the VAT back on your VAT return.

If you pay for it yourself, then you have to prove that it is wholly and exclusively for business use.

**eliquant** · 17 July 2010, 12:19

Thanks for the advice, I was powering up the laptop and it just shut down during or soon after boot up with the problem getting progressively worse.

I opened it up and blew the massive mound of dust out of it - the fans were running ok. I've now had it running 1hour+ with video / audio playing and doing lots of stuff internet surfing, going to put the screws back in and hopefully I should be ok.

I didn't want to shell out £2k+ on a laptop when this one is only 19 months old.

**BolshieBastard** · 17 July 2010, 13:33

Originally posted by TheFaQQer View Post

Get a company credit card or debit card. Pay for it on your company card, then claim the VAT back on your VAT return.

If you pay for it yourself, then you have to prove that it is wholly and exclusively for business use.

WHS.

But why would anyone pay 2 grand on a laptop ffs!?

**nomadd** · 17 July 2010, 13:53

Originally posted by BolshieBastard View Post

But why would anyone pay 2 grand on a laptop ffs!?

WHS

I'd always wanted a decent "business" laptop, and had always been a huge fan of the IBM (now Lenovo) Thinkpad range. Bought a decent one of them last year, and even including paying £60 extra for the internal 3G modem it still only came to half what the OP quoted.

Still, he seems to have blown the dust out of his old one now, so some common-sense prevailed.

**d000hg** · 17 July 2010, 14:02

Originally posted by BolshieBastard View Post

WHS.

But why would anyone pay 2 grand on a laptop ffs!?

Because they're on the flat-VAT rate and want to be able to spend enough to be able to claim the VAT?

**TheFaQQer** · 17 July 2010, 14:13

Originally posted by d000hg View Post

Because they're on the flat-VAT rate and want to be able to spend enough to be able to claim the VAT?

I think the point was that spending significantly more than is necessary just to reclaim the VAT is a somewhat pointless exercise.

A somewhat Phyrric victory.

**d000hg** · 17 July 2010, 14:18

Is the limit 2K including or excluding VAT? Either way getting 20% off is hardly pyrrhic since that's £3-400. A Macbook Pro will eat up £2K if you want a big screen - but you can also include other purchases like a printer.

Best way to pay for a 2K+ laptop via Limited when on the VAT Flat rate scheme.