Buying stuff for a home office

[hyperD]

But surely your plasma screen is on promoting your company in a company made video using your company bought software for your clients while they sipp your company bought coffee sitting on your company bought furniture while waiting to see you, the director?

Think like a business.

Then pay the BIK after a nasty inspection

[Wanderer]

Surely what a company spends its money on is its own business... d000hg Ltd could spend £10k on chocolate covered monkeys, no?

Sure it can. It's just that you can't claim tax relief on it and if it's for your personal use then it's a benefit in kind so you pay PAYE/NI on it.

But anyway say the company buys a big plasma, "for the director's office". What actually happens if HMRC don't like it? Can a company buy non-company stuff and not write it off, just choosing to spend their money on stuff?

Sure, if you are the company director then you can make the company can do anything you like! It's just that if you get investigated by HMRC then you will have to pay the tax due and a penalty.

[SueEllen]

Surely what a company spends its money on is its own business... d000hg Ltd could spend £10k on chocolate covered monkeys, no?

But anyway say the company buys a big plasma, "for the director's office". What actually happens if HMRC don't like it? Can a company buy non-company stuff and not write it off, just choosing to spend their money on stuff?

Nope. It's a BIK and you will be taxed personally on it.

Some light reading for you -
Wholly & exclusively: duality of, or non-trade, purpose: non travel topics

Wholly & exclusively: duality of, or non-trade, purpose: remuneration, etc

(None specifically cover the TV but are interesting)

[d000hg]

Surely what a company spends its money on is its own business... d000hg Ltd could spend £10k on chocolate covered monkeys, no?

But anyway say the company buys a big plasma, "for the director's office". What actually happens if HMRC don't like it? Can a company buy non-company stuff and not write it off, just choosing to spend their money on stuff?

[norrahe]

If you are stepping out of the boundries of the standard fare, PC, printer monitor etc you are going to have to think about your attitude to risk. You only have to justify it if you are inspected of course but do you want to live in fear of that investigation? Bearing in mind you can't buy work shirts unless it has a company logo on it or a company car incurs BIK just for being 'available' for private use they seem to blow hot and cold. After all a printer is perfectly acceptable but we all print personal stuff on it. God knows how they make their decisions on some stuff.

Make it sensible and have your justification ready and if you feel it is largly work related and is needed/adds value stick it on but be honest to yourself I think.

WHS, stick to the basic office kit and be done with it.

[northernladuk]

If you are stepping out of the boundries of the standard fare, PC, printer monitor etc you are going to have to think about your attitude to risk. You only have to justify it if you are inspected of course but do you want to live in fear of that investigation? Bearing in mind you can't buy work shirts unless it has a company logo on it or a company car incurs BIK just for being 'available' for private use they seem to blow hot and cold. After all a printer is perfectly acceptable but we all print personal stuff on it. God knows how they make their decisions on some stuff.

Make it sensible and have your justification ready and if you feel it is largly work related and is needed/adds value stick it on but be honest to yourself I think.

[d000hg]

I'd like to see your argument to justify the TV....

Easy if I were developing console games or any software relating to presentations, where I need to check it works on a typical widescreen TV.

[d000hg]

Your company can buy whatever it fracking well wants. The only question is can it be put above or below the line when calculating tax.

That's kind of the question I'm asking. I am not claiming the TV will be used as part of the business per se, but as equipment provided for employees during business hours.

I've seen offices where everyone was given a TV on their desk, because they were basically waiting for something to happen every few hours... that's more the situation I'm in.

If I don't even try to justify it as for business use, but is still owned by the company... then what? Is it a good plan, or beneficial to just buy personally?

[HairyArsedBloke]

Just wondering, how would you justify a TV as a company expense?

I've just thought - I could get away with that. I need to me able to monitor Bloomberg and CNBC (actually I fracking hate that load of merde) for the economic events that they cover.

[HairyArsedBloke]

Your company can buy whatever it fracking well wants. The only question is can it be put above or below the line when calculating tax.

I hate the term 'claiming against tax'. It's slave attitude. What it is saying is that revenue of your enterprise belongs to the government (or a proportion of it) unless you have a very good reason for it not to be.

I do not have to worry about it any more, but when I was a UK contractor in the 80's and 90's EVERYTHING went on expenses where I could; argue about it later.

[Wanderer]

Just wondering, how would you justify a TV as a company expense? Perhaps if you were working for the BBC or in media, but other than that it's going to be a bit tricky?

I'm not sure why someone would buy a TV and use it as a monitor though. Buying a monitor and a TV card is much cheaper....

[Clippy]

I recently bought and expensed a Samsung LCD monitor that has an in-built TV tuner & HDMI which allows me to watch TV or play the XBox if so desired.

About 99% of the time it is used as a monitor and the receipt and literature predominately refer to it as a monitor so, if audited by HMRC, I would be comfortable justifying it's purchase.

Worst case scenario, if HMRC don't agree, I have to personally refund the cost.

[Drewster]

If you genuinely believe they are legit go for it.....

I'd like to see your argument to justify the TV....

[d000hg]

I work from home and have an office set up. Some purchases would be a grey area on being tax-deductible (like a radio/CD-player/TV).
I am buying them for company purposes so even if I don't expect them to pass scrutiny, is there any reason not to buy them through the company regardless?