How are computer-related purchases accounted for?Ĭomputer equipment, such as a PC, server or printer (and any other office-related equipment) is treated differently from software in your company accounts.Ĭonsumables such as standard software, licence fees and memory cards are treated as standard allowable business expenses, whereas pieces of equipment are treated as ‘fixed assets’, subject to capital allowances rules. If there is significant personal use, then HMRC could claim that the equipment has a duality of purpose, and you could be taxed on the value of the purchase as a ‘benefit in kind’. Any personal use must be purely ‘incidental’. If your company is paying for it, then the equipment must be used for business purposes. The golden rule relates to how your computer equipment is to be used on an everyday basis. So, if it’s time for you to upgrade your laptop, or perform that long-awaited software upgrade on your PC, you need to be aware of HMRC’s rules if you’re claiming such expenses via your business. If you need to buy a new PC or upgrade your software, how are these expenses treated for tax purposes? Here we explain how technology costs are accounted for, and look at the rules which govern the treatment of computer-related purchases.Įquipment costs are often the largest expenses a typical small business will incur. Pension contributions and tax relief – how it works.Top 10 tips for securing a contractor mortgage.April 2023 Corporation Tax Rise Calculator.
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