I am recentlly opened an personal limited company. And need buy some stuff. Something like computer, table and external monitor etc. But I don't have my personal office. I can try my best to let these stuff as business need. but what evidence should I show HMRC to claim tax deduction?
A computer , monitor, printer, software, cables, etc. are all requirements of your business.
You simply need the VAT receipts showing the proper breakdown of the purchases and then put those through your books (try to ensure that receipts are only for business items rather than mixed purchases).
For capital purchases such as a computer that would come under your annual investment allowance and could be written down in the first year for tax purposes but through your books you would capitalise and depreciate over four years on a straight line basis with nil residual.
Doesn't mean that you stop using it after four years, just means that it's written down to approximately what it's worth.
cables, mice, keyboards, etc. although essentially being capital in nature tend to be expenses in the year of purchase unless all purchased together in which case they will be capitalised together. (I only mention that as you seperate out computer and monitor making me think that this is a laptop purchase).
The table would like as not suffer from having duality of purpose and I would not try to put that through the books where as you state you do not have a dedicated office.
As an asidem never refer to your company as a personal limited company. You may be the only person in it but there is no difference in legal structure between your business and the Post Office even though the IR35 legislation from the previous administration would try to convince everyone otherwise. And of course, who knows, mighty oaks from little acorns and all that.
Hope that helps,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I am buying a bigger external monitor and better keyboard for my old laptop. Is that ok? Becasue the laptop has a mix use. Does that mean I need buy a laptop just for business. So the external monitor can claim tax deduction?
Where private usage is insignificant as indicated in the EIM then the asset should be allowable for tax purposes.
Note that whenever directed to an EIM print it off and keep it safe as HMRC tend to change and delete them leaving you without evidence as to why you have acted in a certain way.
Hope that helps,
Shaun.
p.s. I didn't make it clear in my first post but AIA is only available for new purposes so if your laptop was brought into the business from previously being owned privately AIA would not be available but first year 100% WDA would be. For the new monitor and keyboard that would have AIA available to it.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
