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Purchase of window film through limited company

Purchasing Window Film through a limited company

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Client is working from home via his close limited company and uses company funds to buy window film.  He trades as a computer software engineer and says it is to stop glare from the windows.  I am taking it at face value that this is right.  Am I correct to declare the purchase in plant and machinary?  Am I able to claim Annual Investment allowances or writing down allowances if I so choose? 

In a past year the client purchased a small amount of crypto through the ltd co.  I have not claimed any tax allowances on the purchase.  Am I suppoosed to revalue each year and pass the difference through the intagible fixed assets schedule?  If so, and there is an increase where do i journalise the corresponding credit entry? 

Finally, some of the computer hardware has both increased and reduced in price.  There is quite a large amount.  Do others try to match net asset value of the assets against market values in the fixed assets schedule with a revaluation each year?   If so, do the corresponding entries pass through revaluation reserves?

Replies (20)

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By williams lester accountants
21st Jan 2022 15:36

Assuming it is a standard size window, reflective film would cost around £50?

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Replying to williams lester accountants:
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By Tax Dragon
21st Jan 2022 15:48

Hopefully not a penny more.

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Replying to Tax Dragon:
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By Paul Crowley
21st Jan 2022 18:38

On the basis of trivial benefit?

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Replying to Paul Crowley:
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By Tax Dragon
22nd Jan 2022 03:05

Yes.

Contrary to calculatorboy's comment below, materiality don't come into taxation of employees, but there is a figure - £50 a pop, £300 annually - below (or up to) which certain BIKs may not be taxed. My comment was supposed to indicate that it's the employee, not the company, that might have the tax issue here. (Though obvs company might have to report.)

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Replying to Tax Dragon:
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By Hugo Fair
22nd Jan 2022 13:53

I think you're being generous in your use of 'might' regarding who could have the tax issue ... unless the house is itself an asset of the company (which seems unlikely given that client says is 'working from home').
Hence company provision is to employee as a BiK ... what else could it be?

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Replying to Hugo Fair:
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By I'msorryIhaven'taclue
22nd Jan 2022 14:29

Hugo Fair wrote:

Hence company provision is to employee as a BiK ... what else could it be?

It could be the room is used exclusively for business.

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Replying to I'msorryIhaven'taclue:
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By Tax Dragon
22nd Jan 2022 14:38

Ah, you want the tax charge to be under s266(2) (or maybe (3)) ITTOIA?

I agree though - I thought Hugo's "what else could it be?" argument was debunked in yesterthread.

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Replying to Tax Dragon:
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By I'msorryIhaven'taclue
22nd Jan 2022 15:38

Tax Dragon wrote:

I agree though - I thought Hugo's "what else could it be?" argument was debunked in yesterthread.

Heh heh, I was debunking Hugo's todaythread argument.

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Replying to I'msorryIhaven'taclue:
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By Hugo Fair
22nd Jan 2022 15:40

No wonder I stay safely in my bunk ... it appears that I'm threadbare!

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Replying to Tax Dragon:
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By Paul Crowley
22nd Jan 2022 14:10

I have not just mentioned trivial benefits to every single client that employs but loudly and repeatedly since they came in
Yet I hardly ever see them
Also think that the average bookkeeper is also not aware given the number of trivial sized postings to directors loans that I see

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Replying to Paul Crowley:
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By I'msorryIhaven'taclue
22nd Jan 2022 14:33

Paul Crowley wrote:

Also think that the average bookkeeper is also not aware given the number of trivial sized postings to directors loans that I see

Would Receiptbank or similar know to post to DLA?

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Replying to Tax Dragon:
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By Calculatorboy
22nd Jan 2022 21:59

So we are talking about 9.99 for some film which he is saying is wholly etc etc ...
I don't think anyone at hmrc would be bothered with that ..

And the rest of post about revaluations is accounting masturbation .

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A Putey FACA
By Arthur Putey
21st Jan 2022 15:39

Was it gold plated then? Repairs and maintance I'd venture, if at all.

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A Putey FACA
By Arthur Putey
21st Jan 2022 15:40

Tax allowances on the purchase of crypto? Do tell.

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By paul.benny
21st Jan 2022 15:43

Three questions here. On the second and third questions:

Mainstream crypto currency is effectively a foreign currency and should be accounted for under the provisions of FRS105 s25.

FRS105 does not permit the (upwards) revaluation of fixed assets – see s12..
No idea where you got the idea from of revaluing to market value.

UK accounting standards can be downloaded without charge from the FRC website. You might find them useful for your CPD.

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Replying to paul.benny:
the sea otter
By memyself-eye
21st Jan 2022 17:27

My narrowboat has increased in value (honest!) and could be revalued upwards.

Although there again, it's a 'floating asset'........

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Replying to memyself-eye:
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By I'msorryIhaven'taclue
22nd Jan 2022 14:57

Does it have its own pool?

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A Putey FACA
By Arthur Putey
21st Jan 2022 17:32

I thought I'd come up with a way to avoid window tax but the taxman saw through it

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By Calculatorboy
22nd Jan 2022 00:08

Think materiality and move on

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Melchett
By thestudyman
25th Jan 2022 14:37

With regards to the crypto are you sure the crypto funds (or wallet) are in the name of their company, as the huge majority of providers only provide wallets to individuals. Your client is just complicating matters -if the crypto holder provides tax reports by tax year, this gives a stronger indication it is not a company asset or investment.

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