Can contractors claim PCs on tax returns?

Contractors should use a business bank account when making large purchases like PCs.

IT contractors will almost certainly need a personal computer to run their business, but it is not always clear whether such equipment can be included in a tax return.

Answering a reader's question on Contractor UK, Martin Hesketh, managing director of accountancy firm Brookson, said it should be fine for sole traders to purchase a computer in their own name, but it is advisable to use a business bank account for the transaction.

"This will help you to keep a clear audit trail and assist you when preparing your tax return," he added.

"It is important that you are able to demonstrate that you are using the computer for business purposes and there is not a significant element of private use."

A business bank account is also useful for keeping personal finances separate from the company.

For contractors running their business through a limited company, however, it is essential to acquire the computer in the company name if they intend to include it in a tax return.