Person using laptop

It goes without saying that most enterprises operating in the modern business world will require a computer to keep competitive. From storing important company data and using useful software programs to create contracts and invoices to using email options to communicate with customers, computers like desktops and laptops are essential equipment.

However, items of equipment that offer access to so many innovative options typically have a significant price tag. Representing a serious investment in technology and your business, buying a computer can put a dent in your company funds. Fortunately, as long as you follow the correct procedure, if you run as a limited company, you will be able to recoup the costs later on.

How you buy computer equipment is important

To ensure you can claim your purchase, ensure that you buy the computer through your limited company and that the invoice is in its name. This will provide a clear record of accounting for Her Majesty’s Revenue and Customs (HMRC), showing that the equipment was bought with funds from your business for your business’ use.

How the Flat Rate VAT Scheme impacts purchases

If you are registered on the Flat Rate VAT Scheme to claim back any VAT, your purchase will need to have an invoice value of at least £2,000. If your chosen device is lower in price than this amount, you can buy additional computer equipment within the same purchase to ensure the invoice meets requirements.

Buying a business computer and personal use

If you purchase a business desktop computer or laptop, the reason for buying it must be to use it for business purposes. This should typically involve using it either every day or every other day. Providing that your personal use of the device for non-business reasons is incidental, you will be able to claim back the purchase through your limited company with no complaint from HMRC. However, if you use it for personal reasons extensively, HMRC may consider the purchase to have “duality of purpose”.

Is your limited company in need of tax return services in South Yorkshire?

Large purchases like computing equipment can be deducted from your final annual tax bill, but only if you buy them using the approved procedures. If you are unsure on what you can claim back as a limited company in terms of business expenses, don’t panic, help is at hand.

At Adaptive Accountancy, we can help you navigate the complexities of HMRC tax rules and make sure you never pay too much tax. You can then reinvest the money you save in your growing business, purchasing new equipment to remain ahead of your competition.

We offer tailored services to ensure you never pay for accountancy assistance you can’t use. However, we also offer dedicated tax return services. Along with offering expert advice on allowable expenses, we can check and submit your yearly return for you.

If you’re ready to avoid late fees and claim back your business expenses, contact us today.

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