Tax allowance on Computer purchases

[Mike_1]

Hi
I set up a limited company in March 2004 and purchased a laptop in January 2004. This laptop is now mainly used for company work. Can I claim the 100% tax back if I make sure it is before April 2004 or at least 50% after. Can I also use this for furniture purchased in 2003 used for the buisness.

Thanks in advance

[Nigel Lord]

Mike

Technically the asset could be transfered to the company at its open market value in March 2004 (in practical terms as this is so close to the date of purchase the original cost could be used). The company will then be entitled to 100% writing down allowances if the transfer is effected prior to 31 March 2004. Your director's loan account should be credited with the transfer value.

There would be no allowance in 2004/2005 unless you deferred the transfer until after 31 March when the first year allowance would be 50% with the written down value qualifying for 25% allowances each year thereafter. It would be more sensible to make the transfer prior to 31 March. (N.B. You are not entitled to 100% = 50% allowances).

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk

[Mike_1]

Hi
Thanks for getting back to me. I have transferred my laptop and other it hardware to the company as an asset. I have included the VAT price as well. Can I claim VAt back for these asset transfers?

Thanks in advance

[Wendyc]

Hi

You cannot claim the VAT back on this transfer, as it a transfer made from you personally and you are not VAT registered.

You can only claim the VAT back if the invoice is in the name of the company.