Self-employed - cost of a laptop

MrNotty

Hello everyone I hope you will be able to help me.
I started as a sole trader Feb 2011 whilst still employed and am about to fill in my 2011-12 tax return.

My work is being a trainer and need a laptop for presentations. I bought one during the 2011-12 tax year. It is used solely for my work. Can I claim the cost as an expense?

PlutoinCapricorn

If you need it for your work then the cost is a legitimate business expense. I just put mine in as a sundry expense: laptops are so cheap now that they are hardly a real capital item.

MrNotty

It is a Mac Book Air - so not cheap. Bought because it is so light for travel and works with all my other computer equipment (phone, desk-top and iPad) that I use for work and non-work (not claiming). This was the last bought so can legitimately argue it's cost. Still OK?

HappyMJ

MrNotty wrote: »

It is a Mac Book Air - so not cheap. Bought because it is so light for travel and works with all my other computer equipment (phone, desk-top and iPad) that I use for work and non-work (not claiming). This was the last bought so can legitimately argue it's cost. Still OK?

It'll still be under your annual capital allowance. Depends if you want to claim it all in one year, split it over 2 or 3 years...it's up to you.

BrandNewDay

Does it have to be solely for work in order to claim it?

I, too, am self-employed and have bought a cheap used laptop. I'm claiming it. It's only £130, so I doubt any eyebrows will be raised.

I have another question about rent that I'll start another thread for.

HappyMJ

BrandNewDay wrote: »

Does it have to be solely for work in order to claim it?

I, too, am self-employed and have bought a cheap used laptop. I'm claiming it. It's only £130, so I doubt any eyebrows will be raised.

I have another question about rent that I'll start another thread for.

You should be apportioning use between work use and personal use and claiming a percentage. If you have 2 laptops then one could be for business and one for personal use otherwise I'd just go for half and half.

PlutoinCapricorn

If your freelance income is under a certain amount - approx. £60k - you just need to submit totals. The expenses need not be itemised.

If HMRC ever decides to enquire into your figures, you need receipts and to be able to justify the amount claimed. Half and half seems reasonable if that is what you are doing.

Tinker009

Claim the computer as a capital allowance, there's 100% annual investment allowance (AIA) available so you'll get the full business element relieved. It'll go in box 48 on your self-employment pages.

If, for example, it cost £500 and 80% business use then £500 x 80% = £400 will be claimed as AIA.

MrNotty

Tinker - sorry to be dim but if I put the laptop (100% business) as capital year 1 will I be able to offset the whole against tax?

In my case this will be carrying it forward to year 2 (this financial year) as I was setting up last year.

Or is it best to go as a year 1 expense as I will always be under £60k?

VMTech

Tinker009 wrote: »

Claim the computer as a capital allowance, there's 100% annual investment allowance (AIA) available so you'll get the full business element relieved. It'll go in box 48 on your self-employment pages.

If, for example, it cost £500 and 80% business use then £500 x 80% = £400 will be claimed as AIA.

Useful to know. Thank you.