Quick question about a self-employed expense!
Discussion
Hi there,
Got a really basic question that I'm struggling to find an answer for on Google!
Basically two weeks ago I set up as a sole trader, graphic design and illustration etc.
I currently have done only small transactions in my business bank account (the odd £50 for business cards etc,) other than that my actual balance is pretty much £0.00.
Tonight my partner is coming with me to purchase a Macbook Pro as a necessity for my business - he is going to pay for it with his bank card and his money.
I aim to pay him back £200 from my business account, direct debit, each month until paid for.
Question is, because this is a new machine and used 100% for my business, how do I record this as a machine I've purchased (or will be purchasing monthly) on my expenses... considering the transaction isn't actually coming from my account? Can I just put it as an expense anyway and keep the receipt? Shall I just record the monthly payments to my partner's bank as an expense with explanation alongside stating what it's for, as well as keeping the receipt?
Thanks!
Got a really basic question that I'm struggling to find an answer for on Google!
Basically two weeks ago I set up as a sole trader, graphic design and illustration etc.
I currently have done only small transactions in my business bank account (the odd £50 for business cards etc,) other than that my actual balance is pretty much £0.00.
Tonight my partner is coming with me to purchase a Macbook Pro as a necessity for my business - he is going to pay for it with his bank card and his money.
I aim to pay him back £200 from my business account, direct debit, each month until paid for.
Question is, because this is a new machine and used 100% for my business, how do I record this as a machine I've purchased (or will be purchasing monthly) on my expenses... considering the transaction isn't actually coming from my account? Can I just put it as an expense anyway and keep the receipt? Shall I just record the monthly payments to my partner's bank as an expense with explanation alongside stating what it's for, as well as keeping the receipt?
Thanks!
Will you eventually pay your partner?
If you do, then you wil have bought and paid for the machine and therefore you can claim the full Capital Allowances available on it.
HOWEVER, if you do NOT end up paying your partner, then you technically haven't purchased the machine. OK, it's in use in your business but there would be no cost of purchase on which to base any claims.
If you do, then you wil have bought and paid for the machine and therefore you can claim the full Capital Allowances available on it.
HOWEVER, if you do NOT end up paying your partner, then you technically haven't purchased the machine. OK, it's in use in your business but there would be no cost of purchase on which to base any claims.
Louisa911 said:
he is going to pay for it with his bank card and his money.
So it's HIS computer (unless he's making a gift to you, which he isn't). IMO for your business records you need a four point agreement with him which you both sign and sets out,- That you are buying the computer from him
- The price you are going to pay (any VAT if relevant, probably not)
- The timing of the instalments you are going to pay, and
- Most importantly, when ownership passes to you. Straight away when the piece of paper is signed? Or later when the final instalment of £200 is paid?
Gassing Station | Finance | Top of Page | What's New | My Stuff