Buying a watch through ltd company

[Red Wood]

Is this possible?

Could it be accounted for as an investment, and kept as an asset on the books?

 

[Nuno]

It can be done although it's sailing close to the wind. Some years ago I put a Tag Heuer through the books and it was ok.
Agreeing a price for the asset when the company closed was the PITA.

 

[Ian J]

It depends what the company does and the purpose of the watch as well as the value. It's highly unlikely that HMRC would view it as an asset unless the circumstances were very special

 

[UKSBD]

It's not going to be valued like the Wrekin Ruby is it?

 

[UK Contractor Accountant]

You can put what you like through the company but you need to consider the other side if the coin- if it's for personal use it needs to go on the P11D form and be taxed & subject to Class 1A NIC.

 

[UK Contractor Accountant]

If you go for one of those wearable tech smart watches it would be classed as IT Equipment on which you can claim Capital allowances.

 

[Red Wood]

does a 'tech smart' watch include a submariner?!??

Thanks for the interesting information.

 

[Ian J]

does a 'tech smart' watch include a submariner?!??

It's fairly obvious what you are suggesting and that means it would be fairly obvious to both your accountant and HMRC too. If your accountant is honest he probably won't allow it to be put through the books as he knows that what you are doing is fraudulent and likewise HMRC will come down on you like a ton of bricks if they caught you out.

Don't you think that if it was that simple we'd all be doing it

 

[Red Wood]

Point taken Ian, although the desire was never to act in a fraudulent way, just wanted to see if it was possible. Obviously I was hoping that I could reclaim the VAT on the asset and keep on the books, seems as though it's probably more hassle than it's worth. Shame though