Claiming a Laptop against Tax

LastLine

A query more than anything.

I work as a computer salesperson and manager in a rather specifically branded computer chain (not the joyous PC World)

To sell the product and provide relevant expertise for the job it is expected that I am a user of said brand and familiar with it intimately. I also use my home computer some some work correspondance and the like.


Would it therefore be likely to claim for the purchase of a new laptop to replace my antique against my tax allowance for a year, owing to the need to use such for my job.

If not - fair play, I'll just have to shell out my own dollar

If so - how much would be reasonable? I don't feel any more than 50% as I know it wouldn't be soley work related, and if I can, how would I do so?


Any advice or input is very much appreciated on this.

PlutoinCapricorn

Unless you are self employed, there isn't much chance. Employees have little scope for such claims.

If your employer actually requires you to use your own laptop, you might be able to get a small allowance from them.

LastLine

PlutoinCapricorn wrote: »

Unless you are self employed, there isn't much chance. Employees have little scope for such claims.

If your employer actually requires you to use your own laptop, you might be able to get a small allowance from them.

This has much been my assumption, but with the recent 'push' on things like washing uniforms and the like I figured it was worth seeing if anyone had any ideas on it I'll let it stew for a day or two and make sure the general consensus agrees but I'm not shocked by what you say thanks.

Dal_Whinnie

If your employer requires you to use their laptop why don't they provide one?
Does the company have any agreement with HMRC that applies to you and others in similar roles?
Will you only use it for work?
Basically, if buying a laptop is necessary for your employment then you may be able to claim capital allowances on the cost. The requirement is therefore wider than the wholly, exclusively and necessarily requirement for deducting expenses from employment earnings. it just has to be necessary. The current rate is (I believe) 100% of cost assuming it is only used for work purposes. HMRC are quite strict on this so you would need to be able to prove that it is expected by your employer, do your terms and conditions make it necessary for you to buy a specific laptop and keep it up to date? HMRC are more relaxed if you are paid primarily by results (although the legislation does not require this), you say you are involved in sales so this might well be the case and help your argument.
I think it is definitely worth approaching HMRC with a claim.

PlutoinCapricorn

When you are an employee on PAYE, the employer is expected to provide you with everything that you need to do your job. If you have additional expenses e.g. meal and travel costs for a conference, these are often paid by the employer on presentation of a receipt, without involving HMRC.

Washing your uniform, and claiming for essential subscriptions to professional bodies are special cases, as is supplying your own personal tools that you would take with you to another job.

If your contract of employment states that your home is your main place of work, you can get an allowance of £3 per week without much trouble.

However, the laptop is different: the employer should provide you with necessary training during the day, and it is your choice to use your own laptop for work purposes out of hours. Surely there are old models owned by the company that they could loan you.

You can try, but I wouldn't expect too much!

Pennywise

Let's cut straight to the chase. An employee can only claim an expense that is

Wholly,
Exclusively, and
Necessarily

Incurred as part of his duties.

Not only will you fail the exclusively test because you'll use it privately, unless it's in your contract of employment that you must regularly buy an up to date laptop personally, then you fail the necessarily test also simply because your contract of employment doesn't require you to buy a laptop.

So, no, you can't claim it as a tax allowable expense. There's plenty of case law confirming that the crux of the matter is the precise wording of your contract of employment, regardless of any other requirement.

Ridiculously enough, there was even a case where a doctor wasn't allowed the costs of training because his contract of employment didn't specifically say that further training was a condition of the job, yet without such training, he wouldn't be allowed to practice as a doctor - it wasn't his employer requiring the training, but the GMC (I think), i.e. his professional body, which is why HMRC wouldn't allow the cost! There's a difference between tools and training for your profession/vacation and tools/training for your specific job!

As said above, professional subscriptions and uniform washing are different because there's specific provision in the law rules to allow for those and they're therefore not covered by the wholly, exclusively and necessarily rule.

PlutoinCapricorn

I would expect someone in your position to get staff discounts!

I am looking for a new laptop, but am self employed so will be able to offset this against tax. Do you sell Samsung notebooks?

Dal_Whinnie

Pennywise wrote: »

Let's cut straight to the chase. An employee can only claim an expense that is

Wholly,
Exclusively, and
Necessarily

Incurred as part of his duties.

If you check the Capital Allowances Act I believe that you will find, as I said earlier, the cost only has to be necessary to qualify for capital allowances not wholly and exclusively.

I agree that you would normally expect the employer to provide necessary equipment but, particularly if this is primarily a sales job and remunerated as such, it is not uncommon for employee to be required to provide these. The fact that you can retain it if you change jobs is irrelevant.

Dependant on specific terms of contract and, equally important, whether you could carry out your job without the specified laptop. It is hard to get HMRC to accept such claims but I still believe that it may be worth asking.

An alternative is to set up a proper salary sacrifice arrangement and for the employer to then purchase the laptop.

TM1976

Dal_Whinnie wrote: »

If you check the Capital Allowances Act I believe that you will find, as I said earlier, the cost only has to be necessary to qualify for capital allowances not wholly and exclusively.

I agree that you would normally expect the employer to provide necessary equipment but, particularly if this is primarily a sales job and remunerated as such, it is not uncommon for employee to be required to provide these. The fact that you can retain it if you change jobs is irrelevant.

Dependant on specific terms of contract and, equally important, whether you could carry out your job without the specified laptop. It is hard to get HMRC to accept such claims but I still believe that it may be worth asking.

An alternative is to set up a proper salary sacrifice arrangement and for the employer to then purchase the laptop.

As Pennywise has stated and explained quite thoroughly, you can't claim for this.

jimmo

TM1976 wrote: »

As Pennywise has stated and explained quite thoroughly, you can't claim for this.

Yes you can.
Dal Whinnie is quite right. For employees, whilst expenses have to be incurred wholly, exclusively and necessarily, the test for capital allowances is “necessarily“ only.
Sec 36 CAA 2001.
http://www.legislation.gov.uk/ukpga/2001/2/section/36
Also here are the relevant HMRC staff instructions.
http://www.hmrc.gov.uk/manuals/eimanual/EIM36500.htm
And especially,
http://www.hmrc.gov.uk/manuals/eimanual/EIM36540.htm
Nobody will pretend it is easy for an employee to claim capital allowances but if the circumstances are right it is doable.