Reply to: Buying hardware on educational promotions for the company

[qbait]

Thank you all, your feedback is really helpful!

Thanks, @WTFH for your opinion about the morality, haven't looked at it from this side.

[TheCyclingProgrammer]

that assumes that the OP, in his first year of contracting, isn't on the flat rate scheme though.

True, although it's not hard to spec up a MacBook to cross the magic £2k threshold either.

[mudskipper]

that assumes that the OP, in his first year of contracting, isn't on the flat rate scheme though.

If the OP joins the flat rate scheme, they can reclaim VAT on any purchases made for the business in the six months prior to registering.

[Lance]

If you're VAT registered, that would probably offer a bigger saving than any educational discount won't it? 16.7% off the list price. You'll need to purchase it in the company name and get a valid VAT invoice though.

that assumes that the OP, in his first year of contracting, isn't on the flat rate scheme though.

[TheCyclingProgrammer]

If you're VAT registered, that would probably offer a bigger saving than any educational discount won't it? 16.7% off the list price. You'll need to purchase it in the company name and get a valid VAT invoice though.

[Lance]

I've just started contracting and I'm not fully aware of all rules.
I set up the company yesterday, but haven't got back confirmation yet. Can I buy it as a regular person from my private bank account and later provide the receipt somehow?
Or my purchase needs to be with the proper invoice with my company name and number on it?

Your company cannot afford a Macbook it seems.
Do you really need one? I doubt that unless you are developing software for OSX. And if you are then your client will likely provide the platform you need.

Do yourself a favour, and wait till you have some cash in the bank, and are on your 2nd contract. In the meantime buy a cheap laptop, or a 2nd hand one if you must have a Macbook.

[WTFH]

From the moral perspective, everybody will be win-win? Apple will get anyway 1800GBP from my purchase

How is lying a win-win?

I'm not trying to take the moral high ground here, you were the one who mentioned morals, and how everyone was a winner.

Most organisations that offer educational discount do so as loss-leaders. Get someone bought into their brand, and they will spend more money. They also make the margin by selling to professionals and businesses at a higher profit allowing them to do cheap deals for students.

So, if you're going to claim to be a student to get a lower price, don't claim it's a win-win, a victimless crime or has no moral question.

As for buying it through a student friend, you might want to check Apple's verification process, they may have rules around who buys the product - i.e. the name on the invoice. If the invoice is made out to "My Student Friend" at their address, you won't be able to put it through the company.

[jbond007]

@northernladuk What do you recommend? I'm going 2 have ~2invoices per month. At the moment, I'm considering having a software like Xero or service like gorillaaccounting.com

@barrydidit For my work, Mac with ~16GB is must have, I'm afraid.

I believe Gorilla Accounting get good reviews over here and they provide FreeAgent. So you won't require Xero.

[northernladuk]

@northernladuk What do you recommend? I'm going 2 have ~2invoices per month. At the moment, I'm considering having a software like Xero or service like gorillaaccounting.com

@barrydidit For my work, Mac with ~16GB is must have, I'm afraid.

You'll need an accountant not just a bookkeeping service. Xero is a bit complex for what we need so Freeagent is a better bet. You can try it for free. It's just a tool though. It won't tell you what you can and can't claim and any tax information. Just book keeping although is essential.

It's free with the Gorilla service and I'm with them but there are many others around. There is an accounting recommendation thread if you want to have a look at other options.

[qbait]

@northernladuk What do you recommend? I'm going 2 have ~2invoices per month. At the moment, I'm considering having a software like Xero or service like gorillaaccounting.com

@barrydidit For my work, Mac with ~16GB is must have, I'm afraid.

[barrydidit]

I need to buy a new Macbook.

Are you sure you just don't fancy one?

[northernladuk]

Yes but please get yourself an accountant.

[qbait]

I've just started contracting and I'm not fully aware of all rules.
I set up the company yesterday, but haven't got back confirmation yet. Can I buy it as a regular person from my private bank account and later provide the receipt somehow?
Or my purchase needs to be with the proper invoice with my company name and number on it?

@cojak I'm not a student, my friend is. Is it a problem? From the moral perspective, everybody will be win-win? Apple will get anyway 1800GBP from my purchase

@northernladuk so can I buy it privately with the receipt and later somehow transfer it to the company? And claim all taxes back?

@Lance @vwdan Cheers

[vwdan]

Yes. HMRC don't give a crap about the business details of a transaction so long as it fits all the usual requirements for a tax deductible business expense/asset purchase/whatever.

Microsoft give more of a crap, but it's unlikely you'll be the first person in the world to get done for it.

[Lance]

I need to buy a new Macbook. On Educational promotion, it's much cheaper. Can I pay from there and include as the company expense?

I did. As long as the invoice is to the company it's fine.
I used Mrs. Lance's educational privilege for some MS Surface accessories.
Microsoft don't mention the promotional price on the invoice in any case.