Asset(s)

[backlight]

Worth noting that you can also claim capital allowances on personal equipment necessarily used for business purposes via your personal tax return.

Which of the two would be more tax effective? I have the same issue with a personal laptop that I purchased just before I set up my ltd company.

[xoggoth]

Worth noting that you can also claim capital allowances on personal equipment necessarily used for business purposes via your personal tax return.

[XLMonkey]

I believe that HMRC guidance is that any assets bought up to 6 months prior to the formation of a company can be treated as expenses and bought onto the books (provided that they are legitimate company costs, of course). So, you could probably just treat the laptop in this way.

[VectraMan]

That's what I did - the laptop was about 6 months old, too. And strictly speaking, you don't need a receipt, since you can argue that you didn't keep it since you had no plans at that stage to have a company...

That argument is a little dubious. I think you'd have to argue that it was for work for a company you were planning on creating, which was my intention.

I bought mine off ebay, so didn't get a receipt. But I contacted the seller 3 months later and as he was actually a VAT registered company he was happy to give me a proper VAT receipt.

I guess there's a length of time where it wouldn't be reasonable to treat it as a new company purchase, but rather a purchase of second hand goods from you.

[mjshrimpton]

According to our accountant, selling personal posessions to the company is fine, provided that:

a. The company would use / need them
b. They are sold for the current market value as second hand and not some over inflated price.


But be aware, after this the items will no longer belong to you legally, and in the event of the balifs comming in they will sieze them.

This what I did - £2750 worth of gear sold to myco for £1000. One was a 1year old laptop, one a 2 year old shuttle and one a 2.5 years old server, so they went for 50%, 25% and 10% of their purchase price, plus some newer networking gear to set them up on their own outside of the other pcs in the house.

Not used for anything, and they are in the 'office', with photos for Hector should he need them.......

[r0bly0ns]

According to the boys on here selling eqpt to/buying eqpt from your company looks mega dodgy and you're better off not doing it, buying all your eqpt through the company; its written off in 2 or 3 years anyway.

According to our accountant, selling personal posessions to the company is fine, provided that:

a. The company would use / need them
b. They are sold for the current market value as second hand and not some over inflated price.


But be aware, after this the items will no longer belong to you legally, and in the event of the balifs comming in they will sieze them.

[Robot]

That's what I did - the laptop was about 6 months old, too. And strictly speaking, you don't need a receipt, since you can argue that you didn't keep it since you had no plans at that stage to have a company...

You would require the receipt if you wanted reclaim the input VAT back and you would want to keep the receipt due to the 12-month warranty you would normally get.

[TheFaQQer]

How recently did you last buy equipment? I bought a laptop a month before I started the company and claimed that as an expense, reclaimed the VAT too.

Ask your accountant.

That's what I did - the laptop was about 6 months old, too. And strictly speaking, you don't need a receipt, since you can argue that you didn't keep it since you had no plans at that stage to have a company...

[Ruprect]

How recently did you last buy equipment? I bought a laptop a month before I started the company and claimed that as an expense, reclaimed the VAT too.

Ask your accountant.

I think that's slightly different in HMRC's eyes - paying for something yourself then claiming an expense vs selling something personal to the company. Accountants can probably clarify this.

[VectraMan]

How recently did you last buy equipment? I bought a laptop a month before I started the company and claimed that as an expense, reclaimed the VAT too.

Ask your accountant.

[Ruprect]

According to the boys on here selling eqpt to/buying eqpt from your company looks mega dodgy and you're better off not doing it, buying all your eqpt through the company; its written off in 2 or 3 years anyway.

[Old Greg]

I am starting a contract next week with a clause to allow me to use my own equipment. Now I already own (personally) a laptop (plus a whole host of other computer equipment - ok I'm a geek) but should my limited company purchase one for use on contract ?

Why don't you sell your personal one to the company (anyone know whether that's permissible?)

[Ruprect]

If you like. IMO there is no issue with getting as much equipment for the company as you want, as long as you can justify it is for the company's use.

[FarmerPalmer]

I am starting a contract next week with a clause to allow me to use my own equipment. Now I already own (personally) a laptop (plus a whole host of other computer equipment - ok I'm a geek) but should my limited company purchase one for use on contract ?