Director's own laptop now used mainly for Ltd Company

Director's own laptop now used mainly for Ltd...

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I have taken over the accounts for a limited company who are building a specialist software. All their work is done on their laptops. The company hasn't bought any laptops for the directors so they are using their own laptops and have done so since April last year. They use the laptops about 90% for work. Can I bring it into the company as an asset via the Director's loan account? One of the laptops as purchased as early as February 2013 so only two months before one of them became a director. Sorry if its a very basic question but I like to err on the side of caution :-)

Replies (20)

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By wayne
01st Mar 2014 08:58

Laptop

Bring it in at market value and Dr assets, CR dla. As private use is minimal these days with computers there should be no B-in-K. Claim AIA if within the limits. 

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By ShirleyM
01st Mar 2014 09:07

AIA can only be claimed on new equipment, and cannot be claimed on equipment introduced to the business by a director.

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By wayne
01st Mar 2014 09:20

It can

Sorry it can. Whether new or old, it is new to the business, all be it second hand. AIA can be claimed.

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By wayne
01st Mar 2014 09:32

I take it you are not an accountant

so please don't post on subjects you are not qualified in

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Replying to lionofludesch:
By ShirleyM
01st Mar 2014 12:14

I take it you were just being unnecessarily rude and offensive

wayne wrote:

I take it you are not an accountant

so please don't post on subjects you are not qualified in

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By mrme89
01st Mar 2014 09:51

Sorry Wayne, but I agree with Shirley.

The only exception would be if the director bought the laptop immediately before the trade commenced with the sole intention of using it for the business.

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Replying to Duggimon:
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By wayne
01st Mar 2014 09:59

No

Any assets introduced to a trade are introduced at Market Value. I an not talking about pre-trading expenditure. This is a 'sale' from director to company. I have had this with HMRC in the past and it is a purchase so AIA is available as long as it was at arms length. If we beg to differ ring HMRC. I have done this for 18 years and HMRC have always agreed as long as the value is sensible. Kind regards.

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By Catherine123456
01st Mar 2014 10:01

CA23084

Try reading CA23084 (HMRC) Wayne....general exclusion 5 contradicts you.

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Replying to lionofludesch:
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By wayne
01st Mar 2014 10:33

Nope

I am right. Have a good weekend.

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By wayne
01st Mar 2014 10:10

what part

What part are you referring to - the change of trade has no relevance. I am interested.....

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By wayne
01st Mar 2014 10:12

It is not a gift

As I said if at arms length Market Value I am right. There is no gift. That is why HMRC have always agreed with me.

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By orchardacc
01st Mar 2014 10:13

Really?

Considering the what a second hand value of a laptop will be is it worth capitalising?

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Replying to cartebien:
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By wayne
01st Mar 2014 10:20

Up to you

Capitalising boosts the balance sheet rather than write of as an expense. If it is over £300 capitalise then depreciate.... makes the balance sheet look better

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By wayne
01st Mar 2014 10:16

I suggest

If you read the HMRC guidance again you will see I am right. Kind regards. 

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By bigmuggsy
01st Mar 2014 10:19

Wayne is correct - if an asset is introduced to a business regardless when it was purchased then AIA can be claimed. If the director fell under the connected parties rules then yes we would only claim the WDA, but even then we could claim SPA if under £1000. Write it off completely.

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Replying to ireallyshouldknowthisbut:
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By wayne
01st Mar 2014 10:22

Thanks

Have a good weekend

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By AANM
01st Mar 2014 10:57

Thanks for replies

The new laptop is a  Mac and they are worth more than £300 so will make the balance sheet look better than it is at the moment. Also like I said earlier it was bought just two months before the company started trading so it even if it was sold secondhand to someone else it would not be a £100. The other laptop is about 12 months older so I am going to expense that. Thanks for directing me to CA23084 too!

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By taxhound
01st Mar 2014 12:16

CA23084

General exclusion 5: where the asset has been received as a gift CA23040 or has been brought into use for the purposes of a qualifying activity having been acquired for other purposes, including leasing under a long funding lease CA23030.

Now for the OPs position, this may not be the case as they only recently acquired the equipment, but in general, I agree with Shirley M.  If a director introduces an asset they previously used for other purposes, then exclusion 5 applies because it "has been brought into use for the purposes of a qualifying activity having been acquired for other purposes"

Certainly what I had always understood from various courses etc I have attended.

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By ArsalanShah
01st Mar 2014 18:21

there was no need to

say that really to Shirley..

Wayne-Please do not mind me saying this BUT there are always better ways of saying things.

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Replying to ArsalanShah:
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By chrisbb99
18th Apr 2021 12:23

7 years on, but well said ArsalanShah. The amount of condescending, rude, unnecessary remarks made by people on this forum is completely uncalled for - yes I am referring to you Wayne.

Still goes on today, and really tarnishes this website.

I too, like you, will call these people out.

Oh @ Shirley, please ignore Wayne's comments, they serve no purpose.

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