Business Expenses

**malvolio** · 21 December 2011, 11:35

Originally posted by Shivers View Post

A quick question I'm hoping someone will be able to provide clarification.

Currently I'm working under an umbrella company that doesn't allow me to claim on items such as laptops and office equipment.

If I switch to a limited company within this tax year could I claim for the items purchased during the the current tax year under the new limited company given that they are valid business expenses?

Yes. Next...

To be precise you can retrospectively claim for all costs associated with setting up and getting running, the system recognises there's a bit of a Catch-22 if you couldn't. You will of course have an accountant and PCG membership if you do go Limited, who will be able to give precise details.

**northernladuk** · 21 December 2011, 11:43

Is there any cut off or rule of thumb that means the OP has to sell the equipment to his LTD at market rates or claim the actual receipts and purchase cost of the items?

If he bought these back in July and then sets up an LTD in Feb wouldn't it be pushing it to claim full price for something he bought 7 months ago or am I just being too pedantic here?

**malvolio** · 21 December 2011, 12:10

Originally posted by northernladuk View Post

Is there any cut off or rule of thumb that means the OP has to sell the equipment to his LTD at market rates or claim the actual receipts and purchase cost of the items?

If he bought these back in July and then sets up an LTD in Feb wouldn't it be pushing it to claim full price for something he bought 7 months ago or am I just being too pedantic here?

I'd need to look it up, but I think it's up to a year beforehand - provided the expense is clearly and directly related to the new business. PCs are fine, so would a commercial van be, but probably not the Mondeo or the plasma screen "monitor".

**Shivers** · 21 December 2011, 12:18

malvolio and northernladuk thank you for your comments.
I was hoping for a clear-cut answer as per malvolio's advice.
However, northernladuk, thanks for flagging a possible issue.
I will seek further advice from my recently appointed accountant. They did not seem 100% sure on this so wanted to get input from experts on this forum.
Regardless, the tricky bit will be finding all the receipts.

**northernladuk** · 21 December 2011, 12:41

Originally posted by Shivers View Post

Regardless, the tricky bit will be finding all the receipts.

It isn't the end of the world so don't fret. As mentioned you can sell it to your LTD at near purchase price so not too much lost if you can't find them.

**Shivers** · 21 December 2011, 13:05

Thanks northernladuk, I won't worry too much about the receipts then.

I did ask the accountant the question and although he said 'yes', it was not a convincing 'yes' if you know what I mean. Will be catching up with him later on today so will question him further. Main items concerned are a laptop and various pieces of office equipment - desk, chair and bookcase.
Shivers.

**northernladuk** · 21 December 2011, 13:34

Originally posted by Shivers View Post

Thanks northernladuk, I won't worry too much about the receipts then.

I did ask the accountant the question and although he said 'yes', it was not a convincing 'yes' if you know what I mean. Will be catching up with him later on today so will question him further. Main items concerned are a laptop and various pieces of office equipment - desk, chair and bookcase.
Shivers.

Hmm, ok I didn't bother claiming all that. Computer equipment yes but I already had an office and chair and well, dunno, just didn't bother. We use the office as a general area and not wholly and exclusively so the furniture and desktop PC didn't go on the company. I would guess you could argue it was and stuck it in but I didn't bother, just wasn't worth it.

Anyway, the accountant comment is interesting. Do you have a contractor specific accountant or a small local firm? I did the small local firm first off and he didn't understand contracting at all, a contractor specialist would have been over this like a rash as every single one of their clients will have asked this already.

**Shivers** · 21 December 2011, 14:07

Originally posted by northernladuk View Post

Hmm, ok I didn't bother claiming all that. Computer equipment yes but I already had an office and chair and well, dunno, just didn't bother. We use the office as a general area and not wholly and exclusively so the furniture and desktop PC didn't go on the company. I would guess you could argue it was and stuck it in but I didn't bother, just wasn't worth it.

Anyway, the accountant comment is interesting. Do you have a contractor specific accountant or a small local firm? I did the small local firm first off and he didn't understand contracting at all, a contractor specialist would have been over this like a rash as every single one of their clients will have asked this already.

The office equipment is all new so will be claiming on it.

The accountant I'm using is a friend of a friend who I trust 100% who has run his books on a website venture.

Regards, Shivers

Business Expenses