Capital Allowances and computer hardware

scrub

I'm an online manager and so I've bought a couple of pieces of computer equipment (iPad and desktop). I was going to just claim them under expenses but I'm not sure if they should go under 'Capital Allowances' too or instead of. I actually get given notebooks when I work on contracts but I need my own computer equipment too.

Can I add it t both sections or is it a case of either / or?

thanks

zygurat789

scrub wrote: »

I'm an online manager and so I've bought a couple of pieces of computer equipment (iPad and desktop). I was going to just claim them under expenses but I'm not sure if they should go under 'Capital Allowances' too or instead of. I actually get given notebooks when I work on contracts but I need my own computer equipment too.

Can I add it t both sections or is it a case of either / or?

thanks

If you claim it on expenses your expenditure would be nil, to claim capital allowances on the value would be fraud.

scrub

Oh! I thought I was doing the right thing as capital allowances. Phew! I don't understand why but at least I know I'm doing the right thing now!

zygurat789

scrub wrote: »

Oh! I thought I was doing the right thing as capital allowances. Phew! I don't understand why but at least I know I'm doing the right thing now!

Actually I was being serious, in my experience HMRC operate ignorem neminem excusat fairly strictly.

Trying_to_be_good

Did you mean that you can claim it on expenses from one of your contracts, or that you planned to claim it as a business expense?

If you claim it on expenses from someone else, you've had no cost to your self and therefore can't claim anything against your business from HMRC.

If you can't claim the money from somewhere else, and therefore you have paid the sum for a business asset, you can claim capital allowances if it's going to last more than a couple of years, which even in these days computer hardware stuff should.

scrub

I bought the computer equipment for myself which I use for finding jobs, keeping up with the latest technology etc which is vital for my role. I'll claim this as a business expense as I need this equipment to run by business. This is what I assumed would apply as 'Capital Allowance' but I wasn't sure I should put it here, or in Expenses or both...

However, when I get contracts, I will be given a PC to use whilst I'm there. I don't claim for this equipment!

jimmo

If you are running your own business you are self-employed and it is perfectly feasible for you to claim capital allowances in respect of the IT equipment you purchase for your business. In that case the difference between capital allowances and business expense is a grey area and not worth losing sleep over
If you are an employee it is still possible that you may be able to claim capital allowances (or employment expenses) but there is much, much more red tape to be negotiated.
If you are a casual employee moving from job to job you can’t claim relief for any expenditure looking for jobs and it is far more likely that any IT equipment you have purchased is personal and not allowable.
You describe yourself as an online manager and the instinctive response is that a manager is an employee, taking directions from above and managing staff and the chances of you being able to claim for your IT purchase are pretty remote, but not entirely impossible.
Can you put some flesh on the bones?

scrub

I create and manage websites for companies from a marketing perspective and do their analytics. I take direction from managers on what they want etc as I need to create the site in line with the rest of the company's strategy. The economic climate meant I had to become a sole trader for my last contract which ended in March. I'm now back on PAYE.

However, last year, I was unemployed for several months so needed all the equipment to look for a job. I need an iPad too as I will possibly implement apps so have to understand how they work and how people engage with them. I do consider the equipment I have as essential to me being able to do my job effectively.

somethingcorporate

If you're on PAYE your employer should be buying the equipment you'd need to do your job effectively. If these are relating to your self-employed period then I suggest putting them as expenses is "probably" ok. As per a couple of the posts above, this is a bit of a grey area for low cost capital assets.

scrub

Only been PAYE For a couple of months and question relates to last year and my own purchasing of equipment.

I do feel they are legitimate expenses but I just wasn't sure about capital allowance. So expenses it is but not CA. Thanks!