PC purchase : who best to buy ?

PC purchase : who best to buy - company or employee ? or is it better to rent back ? I am trying to compare the relative costs/merits of different ways of paying for a PC.

The company is a sole employee /director, fail IR35 company, where all of the 95% company income - after expenses - is deemed salary. The example uses a PC costing £1000 + VAT = £1175.

Of the 3 options, I suspect that option (a) is best financially, but I need to get a measure on the relative cost differences. Options (b) & (c) may be more expensive but they have the advantage that I own the PC, and the paperwork looks a lot simpler - but at what cost ?

a) company buy :

The company buys the PC, for 75% company use, and 25% personal use. I have to pay tax on £250 own use part, spread over 5 years. £175 VAT is reclaimed. £1000 potential gross income 'disappears', but there is 80% depreciating capital allowance spread over 5 years. The company also pays 12.8% Nat Ins on the £250 part over 5 years. The company owns 100% of the PC.

Q1 : If the PC is sold, say after 2.5 years for £500, does my personal usage tax, the company Nat Ins and capital allowance on the 25% part, stop - set to zero - or do they continue for the full 5 years ? and does half of the £175 VAT have to be re-paid ?

b) employee buy :

I personally buy the PC, paid for out of net income. I own 100% of the PC. The company uses the PC for 75% of the time, free of charge.

Q2 : In this case, can I claim personal tax relief on the 75% company use of my PC ? i.e. on £750+VAT, (presumed spread over 5 years). This would be like the old tax relief on craftsman essential tools of the trade.

c) employee buy and rent back :

I personally buy the PC, paid for out of net income. I own 100% of the PC. I rent it back for use by the company, for 5 years. Assume the rent is £235 pa, such that it pays back in 5 years, but by then, £1175 potential gross income has 'disappeared' as rent.

Q3 : In this case, what are the tax, Nat Ins and VAT implications for both myself and the company ?

-- firstsoft