Closing Company soon claiming for laptop

[ASB]

ASB - don't really understand your point re flat rate scheme...in my mind that would surely hurt you further, as you wouldn't be able to reclaim VAT when you bought it but would still have to charge VAT when you sold it (NB if it was £2k+, I still think you'd struggle to legitimately reclaim VAT, as it's clearly bought with resale in mind rather than long term use in the business).

In the circumstances outlined you are right. The vat would be non reclaimable but would need to be charged on the disposal, so it would be worse.

Really I was just trying to highlight the maximum available financial benefit - even if it were accepted - is pretty small. (Probably negative on the FRS).

[BolshieBastard]

Go ahead, make their day!

[Maslins]

As Clare says, you'd need to pay market value (inc VAT) for the laptop when you took it from the company...so doing it shortly before you close down would see negligible benefit.

ASB - don't really understand your point re flat rate scheme...in my mind that would surely hurt you further, as you wouldn't be able to reclaim VAT when you bought it but would still have to charge VAT when you sold it (NB if it was £2k+, I still think you'd struggle to legitimately reclaim VAT, as it's clearly bought with resale in mind rather than long term use in the business).

Possibly buying it, then de-registering for VAT, then selling it to yourself could benefit. You'd only have to pay over output VAT when deregistering on stock/assets if the VAT is over £1k...but I'd feel uncomfortable allowing one of our clients to do this if it was as intentional as is suggested.

In short - just don't do it!

[Old Greg]

+1 to that!! I taught him well.

Go us!

WACCOTBC.

[northernladuk]

People need to think like company directors.

We get a load of can I rip the tax payer off questions like this and then people worrying about whether their Ltd can buy a laptop that they really need.

If you are not thinking like a real company, ask yourself what a real company would do and do that. You are then on the road to thinking like a real company.

+1 to that!! I taught him well.

[Old Greg]

People need to think like company directors.

We get a load of can I rip the tax payer off questions like this and then people worrying about whether their Ltd can buy a laptop that they really need.

If you are not thinking like a real company, ask yourself what a real company would do and do that. You are then on the road to thinking like a real company.

[tractor]

...

There is the potential VAT saving too. Assuming it is necessary lets us assume it's residual value is 60% then it will still form a part of the capital distribution.

If it were 1200 and on the FRS then the write down would be 480, yielding a tax saving of 96 quid.

If not on the FRS then there is 200 vat back and 80 quid tax saving. Of course there is also the interesting question of the VAT treatment of the asset on disposal.

Unless it is a radically different spec to existing kit then it is difficult to see "necessary"

When making the final VAT return, HMRC will expect to see proper handling of the VAT i.e. if the business is VAT registered, it will be expected to charge VAT when disposing of the asset.

[ASB]

The laptop will just be transferred back to you at market value when you close, which given how close the link is between purchase & closure it's likely to be full cost. Therefore no, or very little tax saving, for a risky action. Not worth it in my view.

There is the potential VAT saving too. Assuming it is necessary lets us assume it's residual value is 60% then it will still form a part of the capital distribution.

If it were 1200 and on the FRS then the write down would be 480, yielding a tax saving of 96 quid.

If not on the FRS then there is 200 vat back and 80 quid tax saving. Of course there is also the interesting question of the VAT treatment of the asset on disposal.

Unless it is a radically different spec to existing kit then it is difficult to see "necessary"

[Clare@InTouch]

The laptop will just be transferred back to you at market value when you close, which given how close the link is between purchase & closure it's likely to be full cost. Therefore no, or very little tax saving, for a risky action. Not worth it in my view.

The kindle could be claimed if it was wholly and exclusively for business purposes, say if you were software testing on it, but being "educational" is a bit of a stretch!

[northernladuk]

Hi,

I may take the company through MVL soon.

however I need to claim for a new laptop this month as I need to test s/w prior to close down....

any body see any issues with this ?

i.e will HMRC frown during audit

p.s would also like to claim for a kindle purchased last month as educational.

Frown? They will positively rub there hands with glee when they find that.

If you are taking the piss don't do it. It just isn't worth it for one laptop.

Kindle is not business use. I know you are coming on here for lots of people to say yes go ahead and I somehow think you will argue until you hear the right answer but IMO don't claim the PC as you know full well the business doesn't need it and so will HMRC and the Kindle is a joke.

[kingcook]

Hi,

I may take the company through MVL soon.

however I need to claim for a new laptop this month as I need to test s/w prior to close down....

any body see any issues with this ?

i.e will HMRC frown during audit

p.s would also like to claim for a kindle purchased last month as educational.

Go ahead, HMRC won't mind. You can use the remaining money in the company bank account to pay for high class hookers (who don't generally give receipts so you could maybe just pretend to pay some high class hookers but keep the money for yourself, all classed as "business entertainment" of course).

[Old Greg]

Hi,

I may take the company through MVL soon.

however I need to claim for a new laptop this month as I need to test s/w prior to close down....

any body see any issues with this ?

i.e will HMRC frown during audit

p.s would also like to claim for a kindle purchased last month as educational.

Claim? What is this, a no win no fee ambulance chase?

[BiggieBig]

Hi,

I may take the company through MVL soon.

however I need to claim for a new laptop this month as I need to test s/w prior to close down....

any body see any issues with this ?

i.e will HMRC frown during audit

p.s would also like to claim for a kindle purchased last month as educational.