Reply to: Buying a laptop

[NibblyPig]

But the portion of the receipt you could claim came to over 2k still?

The invoice including VAT must total £2000 or more, which it did.

However the VAT amount on the invoice wasn't 20%, it was a bit less because some part of it must have not been VAT taxable.

[Hobosapien]

Before I went onto the flat rate VAT scheme where my company can only reclaim VAT on purchases over £2k I used to purchase laptops and anything IT related via the company, to reclaim the VAT and also reduce pre-tax profit, so also saved the corp tax equivalent on the purchase.

Apart from a time when I had a corporate account with an etailer I always purchased the items in my own name (via personal credit card usually) and expensed them to the company, thereby transferring ownership as far as the accounts were concerned. So as far as the supplier was concerned they were purchased by an individual. As far as my company and accountant was concerned they were owned by the company as a depreciating asset.

What I did with the laptop as far as usage and software installed was 100% up to me. My accountant had no interest in that apart from making sure he had invoices for all purchases (including software) I was claiming as an asset purchase via expensing them to the company.

If I ever had to send the laptop back it would be credited back to the company by way of me being refunded by the supplier and then I would transfer the current book value to the company based on the current state of the depreciating asset.

After 3 years (IIRC) the asset depreciated to zero so I could keep any money from selling it on, as it was classed as 'scrapped' for the accounts.

[northernladuk]

Laptop (and accessories, and accidental damage + theft insurance) came to just over £2000.

Bought it through my company. On the VAT flat rate scheme. Reclaimed VAT (only part of the invoice was eligible, I think the extended warranty? or something did not incur VAT), and tax relief.
.

But the portion of the receipt you could claim came to over 2k still?

[NibblyPig]

I bought my company laptop from dell, the home version was £200 cheaper than the business version, identical spec except the business one had windows pro instead of home.

Asked if that would be an issue, dell guy said no problem. Asked if the warranty would still apply if I bought it as a business, he said yes. I read the contract T&C and there was nothing that said I couldn't claim etc.

Laptop (and accessories, and accidental damage + theft insurance) came to just over £2000.

Bought it through my company. On the VAT flat rate scheme. Reclaimed VAT (only part of the invoice was eligible, I think the extended warranty? or something did not incur VAT), and tax relief.

I use the laptop (an XPS 13) for my accounting stuff and for business related software development.

[SueEllen]

On the other -I'll loose all the consumer's rights, so no cancellations/returns etc...

Anyway consumer rights on laptops are shaky. Unless the laptop explodes, fails etc within 30 days of you receiving it you will find yourself fighting with the retailer especially if it's a well-known high street one.

If the case ever went to court, and the random case does, because you brought it for a business and if there is other evidence that points to that then you have no consumer rights.

Depending on where you are buying the laptop from just get a return to base package add-on for 2 years. Alternatively make sure you know the "local" laptop fixer. Though after 2 years if it breaks it's often more economical to get a new laptop.

[NickNick]

I'm buying a laptop for business purposes


So I'm considering the following scenarios:
I might will want to buy some soft from this vendor in the future and install on PC. Will I be able to buy and install "home" licensed soft on the laptop bought from them as for the business?


Thank you

The thing stopping you from installing "Home" versions on the laptop should really be the fact that it isn't a home laptop but a business one. This will be irrespective of whatever the vendor do.

[Goggy]

One other thing to be aware of - most consumer protection rights don't extend to businesses.

Thank you! Good point. Apparently this can be an issue
So :
On the one hand: I can buy on my own name and claim expenses via company, but for obvious reasons It's better to have an invoice on the company name and keep taxman happy
On the other -I'll loose all the consumer's rights, so no cancellations/returns etc...

[Goggy]

So the question is still open. Is it better to register with the supplier as a private person or a business? Any pros/cons/advice?

[mudskipper]

One other thing to be aware of - most consumer protection rights don't extend to businesses.

[cojak]

Forget the accounting bit.

The company is paying for it.

If you're worried about security reformat the laptop before you use it.

[Goggy]

The company is paying. Its a business laptop as I've mentioned

Can there be any reason doing it via P11D?

[Goggy]

The company is paying. Its a business laptop as I've mentioned

[cojak]

He said that there will be no issue, they'll just depreciate it as an asset
What's the problem with the accounting????

It's not a problem, it's just knowing who's going to pay the VAT. Who is paying for the laptop, you or the company? If it's you you'll have to add it to your P11D.

If you're worried about security, just wipe and reformat.

[Goggy]

He said that there will be no issue, they'll just depreciate it as an asset
What's the problem with the accounting????

[cojak]

I'm buying a laptop for business purposes
The laptop come up for more than £1000 mark
The question:
Should I buy it as a person or register on the vendor's website as a business?
Are there any consequences buying it as a business from them? In term of how they treat my laptop and me as a customer?

It might sound weird, but nowadays companies always invent spying (or legal tricks) that prevent you doing what you might want need/want to do with your device. So I want to be sure that I won't have issues down the line.

So I'm considering the following scenarios:
I might will want to buy some soft from this vendor in the future and install on PC. Will I be able to buy and install "home" licensed soft on the laptop bought from them as for the business?

Buying as a business will it affect how the laptop is being registered with them/any extra soft they might lock straight away at the point of sell as to commercial-license only.

For example they won't sell/allow to install some soft that has home license.
or if I need to do anything personal, I might will need to install free for non-commercial use soft..can it affect the warranty (for example will be cancelled as it's a "business" laptop for them)?

Thank you

Worry more about how you are going to expense and and square it with your accountant than about security aspects.

Registering it as a business helps to prove that it's a company laptop.

If you that worried, buy and then wipe and reformat it before using it.