Reply to: Write off of hardware b4 closing Ltd

[SlipTheJab]

I'll just write the MBP off, did think about knocking out a new iPhone X and iPad pro before winding up the Ltd but throught that might be taking the p!ss

[northernladuk]

If its not worth anything you could scrap it and write it off.

If it is worth something YourCo could sell it.

Or you could "scrap it" and write it off and just keep it anyway. IMO not technically correct but in practice I doubt HMRC would ever find out.

If the company keeps it and you liquidate the company then it will become your property as part of the final distribution anyway, same as the profits left in the company.

#micdrop

/thread

[TheCyclingProgrammer]

So after June 2018 it will be 3 years since I bought it, my question is at that point is it worth anything to the Ltd or has it been written off as an asset in that time? If so I can just keep it, if not I will have to sell it as I don't need it, simples?

If its not worth anything you could scrap it and write it off.

If it is worth something YourCo could sell it.

Or you could "scrap it" and write it off and just keep it anyway. IMO not technically correct but in practice I doubt HMRC would ever find out.

If the company keeps it and you liquidate the company then it will become your property as part of the final distribution anyway, same as the profits left in the company.

[northernladuk]

There's nothing magic about 3 years, but in practice I'd suggest yes, for fairly old assets you can just keep them, no money needing to change hands.

Oh nice... That gives me carte blanche to now buy loads of new gear, get tax relief in the final company figures, then do the same

Please don't consider this carte blanche to now buy loads of new gear, get tax relief in the final company figures, then do the same.

Crap...

[Maslins]

So after June 2018 it will be 3 years since I bought it, my question is at that point is it worth anything to the Ltd or has it been written off as an asset in that time? If so I can just keep it, if not I will have to sell it as I don't need it, simples?

There's nothing magic about 3 years, but in practice I'd suggest yes, for fairly old assets you can just keep them, no money needing to change hands.

Please don't consider this carte blanche to now buy loads of new gear, get tax relief in the final company figures, then do the same.

[JonSmile]

what is your companies fixed asset depreciation rules? And what is the net book value now?
This will help you answer your own question ..

[SlipTheJab]

If you drop it and it breaks, then it's worthless, Shirley?

So after June 2018 it will be 3 years since I bought it, my question is at that point is it worth anything to the Ltd or has it been written off as an asset in that time? If so I can just keep it, if not I will have to sell it as I don't need it, simples?

[Scruff]

If you drop it and it breaks, then it's worthless, Shirley?

[TheCyclingProgrammer]

From reading elsewhere he's thinking about closing down his company as he is taking a permanent role.

Then in that case, won't the laptop become OP's property as part of any capital distribution (subject to CGT on market value I assume, but cheaper than accounting for VAT and tax if sold by the company)?

[WTFH]

What I don't understand is...why can't you just keep using it, whilst it remains the property of YourCo? Is the real reason you want it so you can flog it?

From reading elsewhere he's thinking about closing down his company as he is taking a permanent role.

[TheCyclingProgrammer]

If I don't buy it what happens to it? Do I wipe it and bin it? Ebay it? Auction?

Sure, bin the laptop worth £800. I'm sure HMRC will believe you if they ever ask.

You can certainly sell it. Sell it however you like, but you'll still need to account for VAT on the sale.

Also worth noting, if you bough the laptop and reclaimed the VAT on the flat-rate scheme (as it was part of a single purchase over £2k) then the sale should be accounted for outside of the FRS too.

What I don't understand is...why can't you just keep using it, whilst it remains the property of YourCo? Is the real reason you want it so you can flog it?

[northernladuk]

If I don't buy it what happens to it? Do I wipe it and bin it? Ebay it? Auction?

:

[SlipTheJab]

The MBP probably still has a reasonable market value so strictly speaking you should pay YourCo market value for the laptop or declare it on your P11D as a BIK. You will also need to account for VAT on the sale of VAT registered.

If I don't buy it what happens to it? Do I wipe it and bin it? Ebay it? Auction?

[SlipTheJab]

The MBP probably still has a reasonable market value so strictly speaking you should pay YourCo market value for the laptop or declare it on your P11D as a BIK. You will also need to account for VAT on the sale of VAT registered.

Its worth 800 ish right now, my question is after 3 years on the Ltd books is it just written off? I would rather not buy as I am getting shiny new MBP as part of my perm role so I guess my Ltd will have to sell it on eBay?

[TheCyclingProgrammer]

The MBP probably still has a reasonable market value so strictly speaking you should pay YourCo market value for the laptop or declare it on your P11D as a BIK. You will also need to account for VAT on the sale of VAT registered.