claiming expenses with a limited company

dmjohnston0088

Hi

This is my first time posting so hope this is the right section.
i have recently started a new job as a designer and had to create a limted company to do the job.
i also became vat registed (as everyone in the offices suggested). i take my wages are split between directors fees and dividends.

My actual question was with this job i can take some of my work home with me to complete but my personal latop cant handle the software i use and want to purchase a new top of the range laptop (around £2500 inc VAT) through my company which everyone in my office says i can but they dont know what it would cost me/my company.

can anyone explain it to me in simple terms
1. how this would work?
2. how much i would actually pay for the computer?


thanks for the help.

Maidhci

If you purchase a laptop for €2,500 inc. VAT, equivalent to €2,032 net of VAT - the procedure is quite simple, as follows:

Obtain a VAT invoice from the supplier;
Pay the cost including VAT to the supplier either by cash/credit card/cheque;
Process the invoice through your Company accounts debiting the Computer Equipment account with €2,032 and the VAT receivable account with €467;
The VAT element will be recovered or offset against a VAT liability in your VAT return, hence the cost to your Company will be €2,032.

Hope this helps.

NCG

As above. However, if you are withdrawing half your income as dividends I suggest you see an accountant as soon as possible. This is not a tax effective way of drawing funds from your company.