Buying a Computer For Limited Company

[robinessex]

It's the processor and the graphics card that needs to be CAD specific. It’s not practical to upgrade a computer for that task, needs to be a CAD machine from the start. Dell is a good choice. Go for what you will need in the future, upgrading is a more expensive way of doing it. You can only claim VAT if you are VAT Registered, then you can claim all the VAT on every purchase relevant to the business. I doubt a computer invoice will say 'computer game machine', that just advertising/promotion crap. Incidentally, if you upgrade a computer with bits after you’ve purchased it, feed those invoices through as repairs, then the full value of the item can be used as a legitimate purchase re business expenses.

PS. Buy Dells directly from them, not via PC World/Currys. Incompetent idiots I've found.

Edited by robinessex on Sunday 17th September 08:35

Google this "cad workstation definition"
Grab a coffee/beer, and spend a few hours getting to know what’s needed. You'll soon have enough basic knowledge to know if a salesman is talking crap to you then.

Edited by robinessex on Sunday 17th September 08:39

[rustyuk]

Why are you still registered for flat rate vat?

[Eric Mc]

Al U said:

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.

Get the invoice changed if you think the description is incorrect. That's a mistake by the seller - not you.

It is very unlikely that you will get "audited " (an expression HMRC never uses) - unless there are other more serious aspects of your business activities and reported figures that would attract HMRC's attention. I have never, in 40 years of preparing business accounts and tax returns, had HMRC disallow the purchase of a computer or related accessories - ever.

[Toaster Pilot]

rustyuk said:

Why are you still registered for flat rate vat?

This - unless you're in an industry that still benefits from the flat rate being lower (and not IT where they've raised it so it's not worth it) you may want to talk to your accountant about moving to the standard VAT scheme

[768]

Toaster Pilot said:

This - unless you're in an industry that still benefits from the flat rate being lower (and not IT where they've raised it so it's not worth it) you may want to talk to your accountant about moving to the standard VAT scheme

What are the consequences of that? Do you have to track all your mileage and other expenses then? Isn't the FRS much simpler for not much difference?

Genuinely don't know, I'm in IT but it just seemed simpler to continue with the FRS until I see my accountant later this year.

[rustyuk]

You have to track your expenses (mileage etc) anyway. I'm in IT too and making a significant saving having switched from Flat Rate Vat in April.

[Mr Overheads]

I use either laptopsdirect or more recently https://www.uk.insight.com/category/computers/lapt...

Takes away your worry about a consumer machine for business. It is as someone says above just marketing descriptions when they use the term gaming pc. Usually just means it's high spec graphics and sound and expensive.