Need help re: transfer of asset

ianmc38

I have a ltd company. I recently purchased a second hand pc. I have all the receipts from the original purchase of the pc, but obviously it isn't in my name. How can i put this asset into my company legally in order to claim tax relief on its current value?

Thanks,

Ian

madramor

ianmc38 wrote:

I recently purchased a second hand pc.

Who did? you personally or the Company?

ianmc38 wrote:

How can i put this asset into my company legally in order to claim tax relief on its current value?

buy it

CCOVICH

How do you claim tax relief on a computer? Through capital allowances I presume?

DublinWriter

Sell the PC to your company. When I started out first I had about 6K's worth of IT equipment that I sold to my own Ltd. company.

Sell it to your company for the amount at which you bought in personally and it won't affect your personal tax (you will brake even on the deal).

Once it is sold to your company you can then bring depreciation into play and offset it against your corporation tax over a five-year period.

kluivert

DublinWriter...

Depreciation is not allowable against the corporation tax. You have to add it back to your compnay profits but you do get a Capital Allowance at the rate of 12.5% Striaght Line.

Depreciation is defined as the useful economic life of an asset. In the trade accountants are not depreciating computers and similiar items longer than three years over straight line basis. 33.33% each year.

The fact that the computer is second hand leads us to ask the question what is the appropriate useful economic life of this asset. Although the computer may last ten years, in this case three years should be the max.

As for the orginal poster...the post on selling the computer to the company is 100% correct. The Disadvantage is the company cant claim back the vat input as the owner is probably not vat registered and because it was second hand i am assuming the seller wasnt vat registered therefore done of this should matter.

ianmc38

Well when i say 2nd hand its almost brand new. How do i sell it to my company though? How do I personally invoice my company for an receipt that isn't in my name?

kluivert

The computer is in you name.

Get a blank piece of paper. A4 page, can be the companys headed paper if you wish.

To: Company
From: You

Date: xx/xx/xxxx

Re: Purchase of Computer from (your name).

Details of computer:



Cost: (Same as you bought it for) €xxxx.xx

Signed: Your name.

Then get the company cheque book and right a cheque for the value on the A4 page. File it away for the attention of your accountant or who ever prepares your accounts.

ianmc38

kluivert wrote:

The computer is in you name.

Is it? I don't have an invoice with my name on it. I have an invoice with somebody else's name on it... Is that still ok?

Cheers for all the advice.

Ian