Business Digital Camera

RayWolfe

One would hope so!
If you want to discuss your attempts (perhaps unknowingly) at tax fraud SSY you'll have to rise above insulting people disagree with you. Meanwhile legitimate tax relief is tax avoidance rather than tax evasion. Get yourself a book about it.

jimmo

It, sort of pains me to say this but the OP may have a point.
It is really important to appreciate the difference between being self-employed and being a director of a limited company.
If his company provides him with a new digital camera, then there is a definite possibility that the camera can qualify for capital allowances for the company.
http://www.hmrc.gov.uk/manuals/camanual/CA27100.htm
The consequence is that he will have a benefit charge added to his director‘s remuneration.
http://www.hmrc.gov.uk/manuals/eimanual/eim21630.htm
The main technical issue here seems to be the question of whether the digital camera is a machine or not. If it is a machine then you need to balance the potential benefit to the company against the additional liability to the individual.
As things stand, I rather think that the OP has a point and if the figures work out he will legally be practising tax avoidance and not tax evasion. So there is nothing illegal in his idea.
Personally, I don’t like it and think it is morally corrupt. However rules are rules and he has a point.
This time next year the OP might be a millionaire. I won’t, but I can‘t help admiring someone who gives it a go as long as he is doing nothing illegal.

RayWolfe

Oh, if it's a benefit in kind and income tax and NI is paid on it, I have no problem at all. Indeed, the dinning room furniture could be included on this basis. However, I reread the original post and I think not paying tax was on someone's mind at the time.

stphnstevey

Ray, I am so glad it's past your judgement, your opinion means so much to me

RayWolfe

I suspect you mean passed. But past will do.

jimmo

RayWolfe wrote: »

Oh, if it's a benefit in kind and income tax and NI is paid on it, I have no problem at all. Indeed, the dinning room furniture could be included on this basis. However, I reread the original post and I think not paying tax was on someone's mind at the time.

Whilst this may work with the digital camera it will definitely not work with dining room furniture.
Generally speaking capital allowances can only be claimed (by the company in this case) on plant and machinery. The camera may very well be a machine but domestic dining room furniture is definitely neither plant nor machinery.
The consequence of the company providing that are that the company could not claim any capital allowances or anything else in respect of the cost but the director would still have a benefit charge in respect of the assets provided by his employer.
See the links in my post at #13.