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Where Taxpayers and Advisers Meet

buying used stuff for company

xargon
Posts:22
Joined:Wed Mar 18, 2015 9:35 am
buying used stuff for company

Postby xargon » Fri Sep 23, 2016 5:50 pm

I started my consulting company in January and did a couple of projects which got me around £10000. To expand my work, I need to get some computing resources(a powerful computer, desk, chairs etc.). To save money, I would like to source second hand used stuff from the internet. I was wondering what I need to do in order to offset these expenses specifically if there is something specific I need besides ensuring I pay with my company account and get the invoice.

Also, I work out of my home. So the desk, chair and the computer will be placed there. Is that allowed or not as HMRC can always say that I may be using it for personal use?

Thank you for your invaluable advise!

LozaACCS
Posts:1504
Joined:Wed Aug 06, 2008 3:55 pm

Re: buying used stuff for company

Postby LozaACCS » Sat Sep 24, 2016 8:37 am

You should treat the items as capital expenditure, you can claim the Annual Investment Allowance which means that they can be written off for tax purposes in your first trading period, there is a concept known as duality of purpose, I do not believe that you would have any issues in this case

xargon
Posts:22
Joined:Wed Mar 18, 2015 9:35 am

Re: buying used stuff for company

Postby xargon » Sat Sep 24, 2016 10:36 am

Thanks for the reply and confirming this. I need to get myself an accountant now!


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