Ordering VAT free via your work place?

rogueblade · 19 May 2016 at 22:36

Hi guys, not sure the right forum for this, but just wondering if anyone has ever ordered a custom build via their company to save on VAT?
If so, I wonder if they will deal with the person (me) that it not responsible for the payment when calling about putting the build together etc.

varkanoid · 20 May 2016 at 11:50

You either need to be a purchaser at your work or friendly with your accounts and get permission.

You would probably be better off setting up an account in your name with whoever you want to buy the PC off using your company headed notepaper or whatever proof they need and you will also need your companies VAT no and tell them you are paying by credit card and not via a PO. Really you need permission to do it if you are not already a purchaser of IT/equipment.

Cenedd · 20 May 2016 at 12:12

Also, the company will legally own the PC so if it were to go bust it would be considered an asset and sold off.

If the PC is given to you then you'd probably have some tax liability as a benefit. This isn't my field though so you should check with an accountant if feasible.

On Holiday · 20 May 2016 at 12:16

Wouldn't it count as business to business too - affecting returns?

implosiveturnip · 20 May 2016 at 12:18

OR you could just pay what you are obliged to like the rest of us?

peterwalkley · 20 May 2016 at 12:28

Unless things have changed, the company would have to pay the VAT anyway. They get the money back by claiming against the VAT they would be charging their customers.

Also, when the company "sells" it to you, they will have to charge you the VAT.

Or are you talking about a limited company that you own ? In which case, go for it - its all legal. The company owns the asset, but since you own the company ....

rogueblade · 20 May 2016 at 12:37

Cheers for the info guys. Basically I get a finders fee for referring a hire. If I take cash it gets taxed. If I take 'tech' I get the full value of my finders fee for whatever tech I want as my company purchases it for me VAT free.

But good points on the fact that they still legally own it...need to think about that. Buying it off them and then getting charged VAT defeats the purpose lol

Mark M · 20 May 2016 at 12:38

Unless Ive misunderstood, what you are suggesting is called VAT fraud

Edit, posted before your last post.

rogueblade · 20 May 2016 at 12:40

It does sound like a loophole doesn't it? O_O

TacticalFish · 20 May 2016 at 13:38

rogueblade said:
Cheers for the info guys. Basically I get a finders fee for referring a hire. If I take cash it gets taxed. If I take 'tech' I get the full value of my finders fee for whatever tech I want as my company purchases it for me VAT free.

But good points on the fact that they still legally own it...need to think about that. Buying it off them and then getting charged VAT defeats the purpose lol

In this case, the company could buy it for you as 'tech' and then give it to you. If it's gifted it is no longer their property, but you should get this in writing.

This link should clarify, hope it's allowed: ttp://www.accountingweb.co.uk/any-answers/vat-on-supplying-goods-to-the-employees

As I understand it, if they were to buy it for you, and you were then to give them money for it, they would have to charge you VAT.

Badfish · 20 May 2016 at 17:53

TacticalFish said:
In this case, the company could buy it for you as 'tech' and then give it to you. If it's gifted it is no longer their property, but you should get this in writing.

This link should clarify, hope it's allowed: ttp://www.accountingweb.co.uk/any-answers/vat-on-supplying-goods-to-the-employees

As I understand it, if they were to buy it for you, and you were then to give them money for it, they would have to charge you VAT.

This sounds about right, and also if they gift you a laptop you should pay salary tax as its a benefit really.

If you have the option, get the company to buy it and own it, you use it as an employee and after a year or more have the company sell it to you as secondhand and pretty cheap. That way it was purchased properly with paying VAT and there is real depreciation on a company asset , it shouldnt cause any tax problems or questions, nor will you have to pay any extra salary tax for it.

Doogles · 21 May 2016 at 16:25

implosiveturnip said:
OR you could just pay what you are obliged to like the rest of us?

If he can get 20% off who can blame him, VAT is something that we shouldn't have to pay. Absolutely everything is taxed when it should not be just so our government can send it to places it shouldn't end up at, they learn to spend it to the right places then I won't complain!