Equipment purchases prior to starting Ltd Co.

if you are a contractor, it is normally beneficial to be on the flat rate vat scheme

Why is joining the flat rate scheme better ? Aside from the paperwork issue of course......

[ads1980]

I havent yet reclaimed the expenses as there is not enough in the LTD to do so but I guess I can claim the VAT back. I am not on the flat rate VAT scheme either.

[SackmanandCo]

you can actually go back 3 years for equipment, it is services that is 6 months

[mudskipper]

if you are a contractor, it is normally beneficial to be on the flat rate vat scheme

What I didn't realise till too late is that you can claim back VAT on items bought during the 6 months before you joined the flat rate scheme. So purchase equipment before joining the scheme.

[SackmanandCo]

if you are a contractor, it is normally beneficial to be on the flat rate vat scheme

[Robot]

I have also done the same thing. I have a list of expenses to pay back to myself once there is enough money in the LTD to do it.

Did you reclaim input VAT back on these items ?

[ads1980]

I have also done the same thing. I have a list of expenses to pay back to myself once there is enough money in the LTD to do it.

Did you buy the equipment whilst working under brolly or did you buy it for the sole intention of the ltd co? If it was whilst you were brolly, sell it back to the company at a value you think it would fetch if you sold it now.

If it was purposely for the ltd co then claim it as equipment and don't worry about it.

Actually it was both but primarily the latter........its mainly assets like laptops and monitors and all that bizzo....

[SackmanandCo]

You can sell to the Company. Include software costs also. Just estimate market value.

[Stag Cozier]

I started a Ltd Co earlier this year but prior to that I was working under an umbrella co.

I purchased equipment (laptop, disk drive, etc) before starting my Ltd Co and which are now used as part of generating income for that Co.

Can I include the purchase costs of these items as expenses on equipment under my Ltd Co or do I need to 'sell' these items to the business so it owns them as assets ?

Did you buy the equipment whilst working under brolly or did you buy it for the sole intention of the ltd co? If it was whilst you were brolly, sell it back to the company at a value you think it would fetch if you sold it now.

If it was purposely for the ltd co then claim it as equipment and don't worry about it.

[Steven@Parasol]

I started a Ltd Co earlier this year but prior to that I was working under an umbrella co.

I purchased equipment (laptop, disk drive, etc) before starting my Ltd Co and which are now used as part of generating income for that Co.

Can I include the purchase costs of these items as expenses on equipment under my Ltd Co or do I need to 'sell' these items to the business so it owns them as assets ?

The items would need to be sold to the company for their current market value. Given the items will have depreciated in value since they are now secondhand, I would recommend trying to have some evidence to support their value. A good way of doing this is via eBay. If you can find a similar item on eBay, it is worth printing out the final sale price and using this to support the amount you sell them to your company for.

[Jeebo72]

I started a Ltd Co earlier this year but prior to that I was working under an umbrella co.

I purchased equipment (laptop, disk drive, etc) before starting my Ltd Co and which are now used as part of generating income for that Co.

Can I include the purchase costs of these items as expenses on equipment under my Ltd Co or do I need to 'sell' these items to the business so it owns them as assets ?

I did that under guidance of accountant, it wasn't ideal but as it was only a few months before I started the company they thought it was ok. I think if you purchased the items 2 years before you'd have trouble. But in that case you could just sell to your company.

[mavster07]

I started a Ltd Co earlier this year but prior to that I was working under an umbrella co.

I purchased equipment (laptop, disk drive, etc) before starting my Ltd Co and which are now used as part of generating income for that Co.

Can I include the purchase costs of these items as expenses on equipment under my Ltd Co or do I need to 'sell' these items to the business so it owns them as assets ?