Reply With QuoteYes. I have to accurately time various things, and the timing device has to be waterproof. Mechanical watches are not fit for purpose so only quartz and digital are any good for these tasks.
Most of my purchases from new count as equipment or tools.
Out of interest, has anyone been able to successfully put a watch down as a business expense?
If so, what was your reasoning?
I sometimes have a to record the heart rate and being in hospital with equipment that can produce a powerful magnetic field, an anti-magnetic watch could be useful.
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Yes. I have to accurately time various things, and the timing device has to be waterproof. Mechanical watches are not fit for purpose so only quartz and digital are any good for these tasks.
Most of my purchases from new count as equipment or tools.
If you keep turning up late they might come round to your way of thinking
You can claim what you want, but be prepared to justify to HMRC how tbe watch was a business required asset and not a benefit in kind...
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I love your optimism but I think HMRC would take a dim view of an expensive watch for that task!
Suspect you could claim business use proportion (ie, probably not a lot!).
https://www.gov.uk/capital-allowance...ment-allowance
”You cannot claim the full value of items you also use outside your business if you’re a sole trader or partner. Reduce the capital allowances you claim by the amount you use the asset outside your business.”
If you mean as an expense of your employment, I’d say zero chance!
There are people that could justify it easily, Commercial Diver or Pilot for example.
Whether HMRC argue the toss in practice is one thing but you wouldn’t, according to the law, be entitled to relief on 100% of the cost - only the proportion representing business vs private use.Originally Posted by anz3001
If you claim anything debatable, make sure you can substantiate your claim and fully disclose on your tax return.
Pilot would have no chance - no need or regulation to wear a watch. If once is needed then you wouldn't be able to justify more that a reasonable quartz.
A diver would also be hard pressed to claim for a drive watch when dive computers cost less than luxury driver watches.Sent from my SM-G950F using TZ-UK mobile app
I made no inference to value.
To make a claim for expenses as an employee the legislation says “tax relief is available when expenses are incurred 'wholly, exclusively and necessarily in the performance of the duties of the employment”
It would be difficult to see how an expensive watch would be used in the performance of the duties of the employment. There is some discussion as to whether a claim for a smart watch might be allowable but there is no actual legislation yet and I guess it would take a tax case to establish this.
HMRC can easily argue that a £5 Casio or your phone is more than capable for any of your timekeeping needs.
Unless your business is directly connected to watchmaking / horology, the idea of claiming a watch cost (even partially) against your tax is pretty ridiculous.
Maybe a smart watch if you plan on developing an app for it. That’s the only realistic exception I can think of.
Last edited by mutanthands; 5th June 2019 at 09:54.
The addition of 'necessarily' for employee expenses is often the major obstacle as this means your employer must require you to incur that expense. For self employed, companies etc the test is less prohibitive.
HMRC enquire into a small percentage of returns/claims each year but if they did then I would anticipate a challenge on numerous grounds, including personal choice, however there will be scenarios where a claim could be sustained. The idea that a cheaper item can perform the same function doesn't automatically mean a claim can't be valid otherwise more taxpayers would be driving Dacias rather than BMWs, Mercs etc. A well chosen Rolex sub or similar could result in net tax being payable!
I’ve a friend, company owner, that has bought watches through his business. The justification is; I believe, they’re investments that remain company assets. If sold, any profits would return to the business.
Have HMRC agreed with your friend’s view?
If they're investments there wouldn't be an issue necessarily as they'll be purchased and held on the balance sheet. The cost won't (or it shouldn't) go through the profit and loss so the cost wouldn't reduce profit and therefore tax.
Purchasing an investment / asset through a business is very different to expensing an item.
Last edited by Gerald Genta; 5th June 2019 at 17:35.
If he has private/personal use of company assets, that’s a taxable benefit (if you are doing things properly/legally).
As far as I’m aware they’re not worn and held in a safe and should prove to be decent investments if sold.
Not a problem then! Equally, no obvious reason for doing it via the company! Profits are “trapped” in the company!
A non-cash (watch) long service award would work, if you've been your own boss for 20 years(oh that's me then!) :
https://www.gov.uk/expenses-and-bene...s/whats-exempt :
You don’t have to report or pay on a non-cash award to an employee if all of the following apply:
- they’ve worked for you for at least 20 years
- the award is worth less than £50 per year of service
- you haven’t given them a long-service award in the last 10 years
For example, you can give a non-cash award with a value of up to £1,000 for 20 years’ service.
The Long Service Award worked for me and made a 1000 contribution. The good news is only 10 years for the next one !
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