I would say you could probably put the cost of the cable through your company, but not the cost of fitting it (assuming you have had it fitted).
You can argue that you need the cable to ensure an internet connection, however you didn't have to do a bunch of home improvements as well to make it look nice.
IANAA so get proper advise from your accountant etc.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Building a PC- what constitutes Capital Asset"
Collapse
-
Originally posted by css_jay99 View PostHi, I build a PC sometime ago.
All parts were bought at over a few weeks period with receipts. Total cost of parts came to over £1100.
Questions are :
1) Will this total constitute cost of pc as a fixed asset? (can i charge building cost as well ! )
2) will addition of memory, network switch, £120 USB HDD be expense items or capital expenditure items
3) I had to wire my house up with cat6 which cost me close to £150. Can I claim this as an expense or is it capital ?
4) can i put my home wireless connection as a business expense.?
cheers
css_jay99
However, you should capitalise equipment at cost. Components are not equipment, only working "things" are equipment, so basically it's the finished PC valued at the gross cost of its components. It dowes not include your time building it, but it would if you had paid someone else to do it. If you then significantly increase the value of an asset it can be revalued, so in that sense future upgrades can be capitalised. Again, if they cost above your capitalisation threshold you may want to capitalise them separately since they will begin to depreciate at a different point in time. There is a long-standing argument about whether or not a computer asset value includes the OS and COTS applications, since you don't actually own them, only the right to use them but the computer has no value without them. And finally if you built it a while back, you will have to write down its value at whatever depreciation rate you use to derive it's current capital value, or else you are commiting tax evasion. Simple really, isn't it?
Home improvements don't count, only office ones, since the home is yours and only the office facilities are YourCo's. You didn't have to flood wire the house, you could have just run some wire around the skirting boards. Similarly, your domestic WLAN is yours, not YourCo's, so can't be part of YourCo's assets.
But there are ways around all of this, and there are sliding scale benefits where it might be cheaper not to capitalise things. Speak to your accountant, it's what you pay them for.
Leave a comment:
-
Building a PC- what constitutes Capital Asset
Hi, I build a PC sometime ago.
All parts were bought at over a few weeks period with receipts. Total cost of parts came to over £1100.
Questions are :
1) Will this total constitute cost of pc as a fixed asset? (can i charge building cost as well ! )
2) will addition of memory, network switch, £120 USB HDD be expense items or capital expenditure items
3) I had to wire my house up with cat6 which cost me close to £150. Can I claim this as an expense or is it capital ?
4) can i put my home wireless connection as a business expense.?
cheers
css_jay99Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: