Q. My laptop just died - can I buy a new one via my business?

Oh no, your laptop just died?

It’s a sad day for your computer, and oftentimes, a dead computer means you’re unable to work - so rushing to the store to buy a new laptop is probably your first thought, and the painfully high cost might be the second.

If you’re a freelancer, you might be able to buy a new laptop via your business, which in turn can be offset against your tax liability, somewhat reducing the pain.

Most costs your business incurs are tax deductible, if they’re wholly and exclusively for business use. So if your computer is the device you’re using to earn your income, you’ll most likely be able to offset the cost against your tax due.

Just make sure you’re keeping good records of your business purchases, so you can claim them back on your tax, when it’s time to complete your tax return.

It’s also a good idea to purchase the device from your business bank account, so you can clearly seperate any business expenses from your personal expenses.

If you’re VAT registered, you’ll most likely also be able to claim the VAT back too.

If you have an accountant, this is a great question to ask them - as they’ll not only be able to advise you on what is and isn’t tax deductible, but also help you with keeping good records, and making sure it’s covered in your tax return.

For the future, you might also want to consider insurance on your new laptop- which can again, be paid via your business, so if it happens again, you’re not out of pocket. Business Contents Insurance is a thing, just like you might already have for your home contents.