Laptop for rental business (limited company)

Log in to reply
M

MichelleO

Free Member
May 18, 2024
1
0
  • #1
    Hello everyone
    We purchased a laptop for use soley in our new rental business (limited company). Everything to do with the company goes on it (tenant managment, accounts etc) Cost = £399. We do the book keeping and accountants do the year end and filing etc. Do we record the laptop as a capital expense/purchase and depreciate over 3 years or does it go onto expenses. also does depreciation cost need to be apportioned since the laptop was purchased in the middle of the company's financial year. Thank you for your help in advance.
     
    UK Contractor Accountant

    UK Contractor Accountant

    Free Member
    Sep 18, 2013
    6,687
    3
    1,545
    Colchester
  • #4
    MichelleO said:
    Do we record the laptop as a capital expense/purchase and depreciate over 3 years or does it go onto expenses. also does depreciation cost need to be apportioned since the laptop was purchased in the middle of the company's financial year
    Click to expand...
    Think you need to consider your Fixed Assets Accounting Policy you are going to use for the year end Statutory Accounts (FRS102 or FRS105) and apply it consistently.

    E.g - Office Equipment purchases under £300 are expensed. > £300 go to fixed assets and depreciated straight line over 4 years.

    The tax treatment is irrelevant for determining accounting policy
     
    Upvote 0
    MyAccountantOnline

    MyAccountantOnline

    Business Member
    Sep 24, 2008
    15,215
    10
    3,300
    UK
    myaccountantonline.co.uk
  • #5
    MichelleO said:
    Hello everyone
    We purchased a laptop for use soley in our new rental business (limited company). Everything to do with the company goes on it (tenant managment, accounts etc) Cost = £399. We do the book keeping and accountants do the year end and filing etc. Do we record the laptop as a capital expense/purchase and depreciate over 3 years or does it go onto expenses. also does depreciation cost need to be apportioned since the laptop was purchased in the middle of the company's financial year. Thank you for your help in advance.
    Click to expand...

    You can do either - for tax it wont make any difference you'll get 100% tax relief on the cost of the laptop.

    You can decide on the depreciation if you do capitalise it. Bear in mind depreciation is disregarded for tax.
     
    Upvote 0
    Log in to reply

    Latest Articles

    Top Bottom
    Community
    Articles
    Menu