Can I claim a laptop bought before forming my company?

By Unfiled_

I bought a laptop personally before incorporating my limited company and now use it mainly for the business. Can the company recognise or reimburse that cost, and what evidence should I keep before including it in the accounts?

Accepted answer

By Unfiled_

A company may be able to recognise equipment that you bought personally and then transferred for business use, but the correct treatment depends on the facts. Keep the original receipt, proof of payment, the transfer date, the laptop's condition and a reasonable value when the company acquired it. Record whether the company reimbursed you or credited the amount to a director's loan account. A laptop is normally capital equipment rather than an ordinary day-to-day expense, so capital allowances and any private use need separate consideration. Do not automatically use the original purchase price if the laptop had already been used personally. The records should show a genuine company purpose and a supportable value. See GOV.UK guidance on company and accounting records.