Laptop for personal and business use

jake_mike

Free Member
Nov 16, 2017
2
1
Hi guys,

I am planning to purchase a laptop for personal and business use (50/50).

I understand that I can reclaim 50% of the VAT paid and 50% of the net value should be added to the capital asset pool from which I can deduct 18% every tax year?

What if I decide to upgrade the laptop after 1-2 years and sell the old one?

1. Do I need to pay 100% VAT when I sell it?
2. Do 50% of the net sale price needs to go back to the capital asset pool?
3. What about the value difference as I assume the laptop is going to lose more than 18% in value within one year.

Thank you in advance.
 

Scalloway

Free Member
Jun 6, 2010
17,469
3,760
Shetland Islands
1. Do I need to pay 100% VAT when I sell it?

Yes

2. Do 50% of the net sale price needs to go back to the capital asset pool?

Yes

3. What about the value difference as I assume the laptop is going to lose more than 18% in value within one year.

You can put the laptop into its own pool so you can claim a balancing allowance on disposal.

https://www.gov.uk/work-out-capital-allowances/rates-and-pools
 
Upvote 0
I am not going to lie, here.

I would be chucking this on the books and not doing the faffing about. I am sure that even in the exalted world of righteousness that is the tax office Zachias the tax collector has been know to sneak onto Facegram in their lunch break.
 
Upvote 0

MyAccountantOnline

Legacy Full Member
Sep 24, 2008
13,652
2,589
UK
www.myaccountantonline.co.uk
Hi guys,

I am planning to purchase a laptop for personal and business use (50/50).

I understand that I can reclaim 50% of the VAT paid and 50% of the net value should be added to the capital asset pool from which I can deduct 18% every tax year?

What if I decide to upgrade the laptop after 1-2 years and sell the old one?

1. Do I need to pay 100% VAT when I sell it?
2. Do 50% of the net sale price needs to go back to the capital asset pool?
3. What about the value difference as I assume the laptop is going to lose more than 18% in value within one year.

Thank you in advance.

Are you trading as a sole trader or via a limited company?
 
Upvote 0
We all spend too much time on these machines. Why would you be using any technology for personal use ?

There is your answer :)


This is the correct answer, actually, and the only answer. Shut the office door with the computer stuff behind it.

Enjoy the evening speaking to your wife/husband/fiance/houseplants. Delete as applicable.
 
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