Buying a Computer For Limited Company

[Al U]

Hello,

I'll be getting an opinion on this from my accountant on Monday, however thought I would ask here in the mean time.

I am a limited company director and want to buy a computer for my home office. I have read several articles about claiming this as an expense etc. under company equipment costs however what I would like to know is are there any rules for the type/cost of computer I buy?

For convenience and due to lack of detailed knowledge around computer specifications ideally I'd like to have a look on currys/pcworld and get something very high spec that will be in a way "future proof" and will not need hardware replacing or upgrading in the next 5 years. I have noticed that gaming PC's from currys/pcworld tend to have higher perfomance processors & graphics than the other computers they sell and I am leaning towards getting one for the reasons mentioned above. There is also a high chance that the computer will be used to run relatively complex CAD and CAE in the future, therefore would it be acceptable for me to get one?

The reason I am asking this question is that it seems strange to me that I would be allowed to put through an expense with an item on the receipt that says "gaming PC" and that in an audit I may have to prove that it has not been used for that purpose, not sure how I'd go about that even with a normal PC. Thoughts from anyone in the know?

[robinessex]

There's no problem buying a computer for a company, I did it lots of times when contracting. However, if you want it for CAD, beware. Games computers and CAD computers are different animals, in particular, the processor. If you know what CAD software you are looking at, call the suppliers, they’ll point you in the right direction. Also seek advice from better suppliers than Currys/PC World.

http://www.graitec.co.uk/hardware/cad-workstation-...

[Al U]

robinessex said:

There's no problem buying a computer for a company, I did it lots of times when contracting. However, if you want it for CAD, beware. Games computers and CAD computers are different animals, in particular, the processor. If you know what CAD software you are looking at, call the suppliers, they’ll point you in the right direction. Also seek advice from better suppliers than Currys/PC World.

http://www.graitec.co.uk/hardware/cad-workstation-...

Interesting about the processor, I just logged into the computer at the client's site to check the processor and sure enough it is a Xeon type.

With regard to the CAD software it isn't an imminent requirement but it may be in the future. My question remains though is there a limit on the budget or type of computer than you can buy?

[robinessex]

Al U said:

robinessex said:

There's no problem buying a computer for a company, I did it lots of times when contracting. However, if you want it for CAD, beware. Games computers and CAD computers are different animals, in particular, the processor. If you know what CAD software you are looking at, call the suppliers, they’ll point you in the right direction. Also seek advice from better suppliers than Currys/PC World.

http://www.graitec.co.uk/hardware/cad-workstation-...

Interesting about the processor, I just logged into the computer at the client's site to check the processor and sure enough it is a Xeon type.

With regard to the CAD software it isn't an imminent requirement but it may be in the future. My question remains though is there a limit on the budget or type of computer than you can buy?

Nope. Buy what you need. The HMRC don't care, wouldn't even know. And you can also buy a printer, scanner, any peripheral you want. Desk to put it on, chair to sit in. The bottom line for company purchase of capital equipment is ‘any reasonable purchase’. Just state it's for your company use. I think the allowances for computers is higher than other equipment, as it de-values so quickly.

[trickywoo]

Agree with the above. Sounds like you are well short of taking the pee and HMRC won't care.

With all the changes in dividend tax you need to make sure you claim everything possible to make it worth running a Ltd these days.

[Eric Mc]

The company buys the computer as a business asset and can make the relevant Capital Allowance claim on that purchase.

That is it - no complications and no arguments.

[mikef]

Buy what you want, but not from Curry's/PCWorld, obsolescent crap and poor value, clueless service

Dell XPS, or custom build from somewhere like PCSpecialist or OverclockersUK

Just don't put obvious games on the invoice

Edited by mikef on Saturday 16th September 22:27

[768]

If you're on flat rate VAT there might be a bit more to consider.

[Flooble]

True but a CAD machine will probably bust £2000 easily

[Al U]

mikef said:

Just don't put obvious games on the invoice

Edited by mikef on Saturday 16th September 22:27

Not sure what you mean by this?

[Al U]

Eric Mc said:

The company buys the computer as a business asset and can make the relevant Capital Allowance claim on that purchase.

That is it - no complications and no arguments.

OK that sounds simple enough, I just assumed that if the particular computer I bought was called out as a "gaming pc" on the receipt despite me buying it for it's actual spec rather than it's ability to play games that I may end up having to defend it if I get audited.

[mikef]

Al U said:

mikef said:

Just don't put obvious games on the invoice

Edited by mikef on Saturday 16th September 22:27

Not sure what you mean by this?

You referred to a "gaming PC". If you don't buy games through the company then it's not a gaming PC

[Al U]

768 said:

If you're on flat rate VAT there might be a bit more to consider.

I am flat rate and my accountant did mention to me during our brief discussion about it earlier in the week that if I do end up buying one to try and buy all of my equipment in one go so that if I spend £2000 or more I can claim back the VAT. On an invoice amount lower than that I would not be able to claim back the VAT.

[Al U]

Flooble said:

True but a CAD machine will probably bust £2000 easily

To be clear, at this stage I am not buying it as a CAD machine specifically as the requirement is not there yet. My plan is to buy something high spec so that I have a good baseline and then upgrade parts as necessary in future depending on which CAD package I decide to use.

From having a read on some of the websites of the vendors as Robin suggested, it appears that certain providers have lists of certified graphic cards etc. but they are not cheap! When the need arises to do CAD on the computer I could buy the specific graphic card and swap it out of the computer.

[mikef]

Yep. £2K including the VAT, so £1,667 + VAT. That's in CAD workstation territory (with Quadro video card), not PcWorld territory

[Al U]

mikef said:

Al U said:

mikef said:

Just don't put obvious games on the invoice

Edited by mikef on Saturday 16th September 22:27

Not sure what you mean by this?

You referred to a "gaming PC". If you don't buy games through the company then it's not a gaming PC

I can guarantee that I will not be buying any games through the company. However I'm not sure I agree with you, if I was to buy this for example I would struggle to defend the fact that it is not a gaming pc regardless of what I am using it for. That's my concern really -

http://www.currys.co.uk/gbuk/computing/desktop-pcs...

[mikef]

I take it back about buying from them, that's the XPS I was thinking of

If you want to upgrade later to a CAD graphics card, which probably means a higher spec PSU, you might be better starting with a workstation chassis

Maybe check http://www.woc.co.uk

Edited by mikef on Saturday 16th September 23:08

[plasticpig]

mikef said:

Buy what you want, but not from Curry's/PCWorld, obsolescent crap and poor value, clueless service

Dell XPS, or custom build from somewhere like PCSpecialist or OverclockersUK

Just don't put obvious games on the invoice

Edited by mikef on Saturday 16th September 22:27

If the OP is wanting to run Autodesk or Solidworks then they are far better off buying certified hardware. So Dell Precision, HP Z station or Lenovo Thinkstation for example.

[mikef]

plasticpig said:

If the OP is wanting to run Autodesk or Solidworks then they are far better off buying certified hardware. So Dell Precision, HP Z station or Lenovo Thinkstation for example.

Yes, absolutely

[Funk]

plasticpig said:

If the OP is wanting to run Autodesk or Solidworks then they are far better off buying certified hardware. So Dell Precision, HP Z station or Lenovo Thinkstation for example.

Agreed.