Reply to: Flat-rating and pricey laptops

[css_jay99]

Capital Allowances will be based upon the value of the asset in the accounts - if you're claiming the VAT back then this will be the net amount.

cheers, I meant net

[Clare@InTouch]

Ok, I was just now aware that it was possible to have input tax on VAT returns for Flat Rate Scheme

Does that mean First year Allowance will have to be on the Gross amount if I am claiming back the VAT?.

Capital Allowances will be based upon the value of the asset in the accounts - if you're claiming the VAT back then this will be the net amount.

[css_jay99]

Yes you can claim the VAT back. You need to fill in your VAT return appropriately. If you're not sure how to do that then I suggest speaking to your accountant. Otherwise I'm sure there's some help online somewhere.

Ok, I was just now aware that it was possible to have input tax on VAT returns for Flat Rate Scheme

Does that mean First year Allowance will have to be on the Gross amount if I am claiming back the VAT?.

[lje]

Hi, Just to be clear,

Are you guys saying that as a flat Rate Scheme VAT payer. if you have a buy capital expenditures (on same receipt) Totaling £2000 exclusive of VAT then I can reclaim the VAT back?


How do I do that?.

Yes you can claim the VAT back. You need to fill in your VAT return appropriately. If you're not sure how to do that then I suggest speaking to your accountant. Otherwise I'm sure there's some help online somewhere.

[lxt04]

^ Talk to you accountant

If you're an iPad/iPhone developer...yes. Which I am.

Hey, me too

Although no VAT back on mine, since I brought it in the USA. Still get some expenses benefits on it though, so all good.

I'd also consider getting RAM from Crucial, so does it all have to be from one supplier, or if I can demonstrate it's all going in the same box, can I buy RAM from Crucial, external drives from Scan, and an iMac from Apple?

You won't believe me, but Apple charged me some £40 less to fit 8GB of RAM in my Macbook Pro than Crucial! I know Apple have a rep for pricey ram upgrades, but worth checking in with them.

[css_jay99]

Hi, Just to be clear,

Are you guys saying that as a flat Rate Scheme VAT payer. if you have a buy capital expenditures (on same receipt) Totaling £2000 exclusive of VAT then I can reclaim the VAT back?


How do I do that?.


cheers

css_jay99

[TheCyclingProgrammer]

iPad?? Business Expense??

If you're an iPad/iPhone developer...yes. Which I am.

[lje]

It's not for any VAT expense - it's for capital expenditure only.

Ooops - my bad. I meant that but I didn't say it...

[Moscow Mule]

It's for any VAT expense - not just laptops and not just IT. However, it has to be on a single invoice - so must be from the same company. The things don't have to go together though - as long as they are on one invoice it's fine.

It's not for any VAT expense - it's for capital expenditure only.

i.e. You can't spend £2000+VAT on software for resale & claim the VAT back.

The thing about 1 invoice is correct.

My accountant reckons up you can probably include an extended warranty on the invoice too if you're buying one but wasn't very committal...

[lje]

Is this ONLY for laptops, or any IT expenditure? I'm looking at replacing my iMac and a few other PC bits with a single iMac maxed out for memory etc, and running everything in VMs.

I'd also consider getting RAM from Crucial, so does it all have to be from one supplier, or if I can demonstrate it's all going in the same box, can I buy RAM from Crucial, external drives from Scan, and an iMac from Apple?

Cheers...

It's for any VAT expense - not just laptops and not just IT. However, it has to be on a single invoice - so must be from the same company. The things don't have to go together though - as long as they are on one invoice it's fine.

[b0redom]

Is this ONLY for laptops, or any IT expenditure? I'm looking at replacing my iMac and a few other PC bits with a single iMac maxed out for memory etc, and running everything in VMs.

I'd also consider getting RAM from Crucial, so does it all have to be from one supplier, or if I can demonstrate it's all going in the same box, can I buy RAM from Crucial, external drives from Scan, and an iMac from Apple?

Cheers...

[tino]

Indeed; I've been holding off on my MacBook Pro upgrade until next week when I can order it at the same time as an iPad and bring the purchase to over £2k.

iPad?? Business Expense??

[TheCyclingProgrammer]

Indeed; I've been holding off on my MacBook Pro upgrade until next week when I can order it at the same time as an iPad and bring the purchase to over £2k.

[Maslins]

Your maths is a little out. When you're talking about a gross price of £2,000 the VAT is actually £297.87 (£2,000 is 117.5% of the net price).

Also, instead of the RAM etc upgrades you could buy (for example) a printer and scanner on the same order to bring the total gross cost over £2k. It doesn't have to be one specific item over £2k, more one group of items bought together.

[Stag Cozier]

Without quibbling about your maths, the principle is there. If the cost of the laptop is £2000 or more (inclusive of 17.5% VAT), under the flat rate VAT scheme, your business can claim back the 17.5%.