Computer Equipment & Business Expenses

Computer Equipment

Accountants for freelancers, contractors and consultants - Brighton and Sussex - Computer Business Expenses

For business use only

Unsure what to claim for when it comes to computer business expenses?

Company-owned computers used solely for business purposes can be bought tax-free by the company and are exempt from National Insurance payments.

Occasional personal use is ok, like online shopping or Facebook-ing a friend on the train home, so long as the computer is used primarily for business.

Here is the HMRC guide to expenses which covers all areas of expenses.

For personal and business use

If you take your company-owned computer home for ‘significant’ personal use, it becomes a taxable benefit, even if you also use it for work. This means you’ll have to pay extra National Insurance.

To make it clear that your computer is used exclusively for business, only store work files only on it, rather than personal photos and memos.

Accountants for freelancers, contractors and consultants - Brighton and Sussex - Computer Business Expenses

Personal equipment used at work

Good news. The company can claim tax relief if you bring your own computer into the office for business use. To claim, you’ll need to work out the computer’s market value at the point that you brought it in – look at sites like EBay and Amazon to compare similar equipment. But remember, if you also use the computer for regular personal use it becomes a taxable benefit.

Second-hand equipment bought by the company

The company can claim tax relief on any second-hand equipment it buys, just as if it was brand new. To reclaim the VAT you’ll need to ask the seller for a VAT receipt.Accountants for freelancers, contractors and consultants - Brighton and Sussex - Computer Business Expenses

Speak with the Experts about Computer Business Expenses

For expert advice on expenses, speak to our team on 01825 748308 or refer to our A-Z Guide to Expenses for more information.