Small Business Accountants

Can I expense Computer equipment?

Most computer equipment bought for business use can be claimed against UK corporation tax, either as a deductible expense or through capital allowances. The £1 million Annual Investment Allowance typically allows the full cost of desktops, monitors, and peripherals to be written off in the year of purchase. Employer-provided computer equipment used mainly for work does not trigger a benefit in kind charge for the employee.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

Can I expense Computer equipment? - GoForma Small Business | UK Accountants & Tax Advisors

Key takeaways

Computers, laptops, tablets, phones, monitors, keyboards and business software all qualify as allowable IT expenses for UK businesses in 2025/26.
Limited companies can claim 100% of the cost in the year of purchase via the Annual Investment Allowance, which covers up to £1 million of qualifying plant and machinery.
Sole traders can claim computers as capital allowances under the main pool or use the cash basis, which treats the full cost as an expense in the year it is paid.
HMRC requires the equipment to be used wholly and exclusively for business; if you use it personally as well, you must apportion the cost and claim only the business share.
Company-owned equipment lent to a director or employee may create a benefit in kind unless the asset is used primarily for business purposes and private use is incidental.

Yes, you can claim the purchase of computers as a deductible expense.

For further information on allowable business expenses, refer to our expenses and allowances guides for https://www.goforma.com/tax/limited-company-director-expenses-tax-allowance" target="_blank">limited company directors and the https://www.goforma.com/tax/self-employed-expenses-tax-allowances" target="_blank">self-employed.

Frequently asked questions

Can I claim a laptop as a business expense?

Yes, a laptop bought for business use is an allowable expense. A limited company can claim 100% of the cost through the Annual Investment Allowance in the year of purchase. A sole trader can claim it as a capital allowance or under the cash basis. If you also use the laptop for personal tasks, you must calculate a reasonable business-use proportion and claim only that share.

What IT equipment can I claim as a business expense?

You can claim computers, laptops, tablets, smartphones, monitors, keyboards, mice, printers, webcams, headsets, and business software licences. The cost of accessories and peripherals that support business work also qualifies. The common requirement across all items is that they must be used wholly and exclusively for business, or apportioned if there is mixed personal use.

How does the Annual Investment Allowance work for computer equipment?

The Annual Investment Allowance lets a limited company deduct 100% of qualifying capital expenditure, including computers and IT equipment, in the tax year the purchase is made. The current AIA limit is £1 million per year, which is well above the cost of most IT purchases. This means rather than depreciating equipment over several years, a company can reduce its taxable profits immediately with the full purchase price.

Can a sole trader claim computer equipment?

Yes. A sole trader can claim computer equipment as a capital allowance on the main pool at an 18% writing-down allowance per year, or use the cash basis, which allows the full cost to be deducted as a business expense in the year it is paid. The cash basis is simpler and is the default for most sole traders with turnover below the VAT registration threshold. Sole traders can also use the AIA where applicable.

What if I use my computer for both work and personal use?

HMRC requires business expenses to be wholly and exclusively for business use. If you use the same device for personal activities, you can still claim the business share of the cost. Work out a reasonable percentage based on actual usage, for example 70% business and 30% personal, and claim only the business proportion. Keep a note of how you calculated the split in case HMRC asks during an enquiry.

Can my limited company buy a computer and let me use it?

Yes, a company can purchase IT equipment for directors or employees to use. If the equipment is used primarily for business and any private use is incidental, no benefit in kind arises. If the device is used significantly for personal purposes, HMRC may treat the private use as a taxable benefit in kind, meaning the director or employee could face an income tax charge on the assessed value of that private use.

Can I claim software and subscriptions as well as hardware?

Yes. Business software licences, SaaS subscriptions, antivirus tools and cloud storage services used for work are all allowable expenses. Annual or monthly software subscriptions are typically claimed as revenue expenses rather than capital items, meaning they are deducted from profits in the period they relate to. One-off software purchases may qualify as capital expenditure and fall under the AIA for limited companies.

Do I need to keep receipts for computer equipment I claim?

Yes, HMRC requires you to keep records of all business expenditure, including IT purchases. For limited companies, records must be retained for at least six years from the end of the accounting period. Sole traders must keep records for at least five years after the 31 January Self Assessment deadline. Acceptable evidence includes purchase receipts, invoices, bank statements and, where relevant, a note of any personal-use apportionment.

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