Tax on Company computers

[VectraMan]

I thought the loaning a computer to employees thing was about encouraging home computer use rather than workers being given laptops to use for work. I suspect this will only apply if it is home use, rather than primarily for work, although that can be a bit of a grey area. It'd be nice to know.

Perhaps it's time to buy new equipment before the 6th April deadline?

[expat]

I expect that if we went through your books Expat that apart from seeing porn we will also find your affairs all in order...all the tax that is due from you paid and not a whinge in hearing range.

After all...its only fair!

Mailman

That's right. Except the porn.

I don't claim tax relief on things that are for personal use. I own my laptop personally. I buy A4 paper with my own money, rather than either pretend that it's a business expense or just steal it from the client. I claim only actual business expenses.

Doubtless some of you will call that being a mug. I call it not being a thief.



History is bunk - Henry Ford.
History is what you clear at the end of the session - Expat

[DimPrawn]

Expat you really are one strange person.

You sure your not a disguised New Lie drone?

"Fairness", "Disguised Employees", "Pretending to run a business", "Dodging Tax"

Are these the thoughts you have when you think of small IT consulting companies?

[expat]

Expat you really are one strange person.

You sure your not a disguised New Lie drone?

"Fairness", "Disguised Employees", "Pretending to run a business", "Dodging Tax"

Are these the thoughts you have when you think of small IT consulting companies?

Pretty sure.

I don't think I've used all of those words.

I have mentioned fairness: I've said that it is only fair that you have to pay with taxed money for things that are personal rather than business. Is that a strange concept?

I have mentioned dodging tax (implicitly). IMHO that's what you're doing if you claim something as a business expense when it's not, thus wrongly avoiding paying tax on money that is for personal use. Is that a strange opinion?

I do not see myself as a disguised employee, I see myself as a self-employed person disguised as a company business because the government has made that necessary. But that question of status is nothing to do with the simple matter that business expenses are paid with business money, and personal expenses are paid with taxed personal money, and that business money is liable to income tax on the way to becoming personal money; so that paying a personal expense with business money is evading tax.

What is strange about that idea?

[expat]

Well they're not getting the point! Running your own business isn't solely for the tax dodge - it's about control and professionalism.

Hi! Glad I'm not on my own about that. I'm beginning to be ashamed to think I may be classed with a bunch of people to whom tax is just a competition: pay less and you've won more.

[eternalnomad]

expat,

are you saying that you NEVER use something personally that has been purchased by your company.

The odd few bytes down the broadband connection ?
A sneaky call to the wife on the company mobile ?

[expat]

No that doesn't sound fair. Many businesses supply laptops to their staff as it allows their staff to be mobile and/or work from home. Now Gordon is taxing them for this 'pleasure'. Most company laptops will be locked down, so the staff could not install all the cr@p which usually finds its way onto thier home computer i.e. they can't use the company machine in the way they would a personal one

Also, didn't this lot set up a scheme to encourage exactly this practice, whereby an employer could donate their staff kit for home use. Sounds like the 0% tax rate scam to me. Encourage people to do something, then when sufficient numbers do, tax them for doing what you encouraged them to do.

Finally, if this is a benefit in kind, would the charge be on a yearly basis? So £200 in 2006, 07,08,09,10 etc becuause your employer gave you a poxy laptop with office on it.

No, I don't think that a company laptop that you never use for personal use should be taxed as a benefit in kind. But I do think that if you do make personal use of it, it should.

[The Lone Gunman]

The point of this is that Gaydon and NL have been pushing for some time to make the UK the number 1 flexible net savvy country. They have been pushing for home working and all sorts of other stuff.

This is a tax on that. It will not encourage any of that.

Would it be OK for my Ltd. to buy a PC and then sell it to me (very cheap its second hand).

[expat]

expat,

are you saying that you NEVER use something personally that has been purchased by your company.

The odd few bytes down the broadband connection ?
A sneaky call to the wife on the company mobile ?

Yes I'm saying that. I pay for these things personally. The broadband connection is mine: if I made significant use of it for business ("I uploaded my CV" does not count) then I'd think about claiming a proportion. Or maybe not, on the grounds that I'd have the connection anyway.

Likewise the mobile phones. They are mine. I claim some of the bill when there is unusually high business activity, eg lots of foreign calls. Otherwise, it's just a normal cost of living.

I just don't have the mentality of minimising tax by using business stuff for personal use.


Are you saying that you think it's not stealing to do what you mention? Or are just just saying that there's nothing wrong with stealing?

[DimPrawn]

If your contracting work dries up Expat, I'm sure there will be a place for you at the Revenue working on IR35 cases and chasing those evil "stealing" tax dodgers who make a personal call on a works phone.