Assets are deducted from profits (so reduce tax). Expenses are different. Laptops, furniture, etc are assets and follow capital allowance rules in ref. to the value of the asset and the amount deducted from profit to lower tax burden. Expenses are things like printer ink, coffee, etc or the book definition "a business expense must be necessary and that is wholly and exclusively incurred as part of the day to day running of your business" (but does not meet the criteria for an asset). Further more there are tax deductible and non tax deductible expenses, obviously tax deductible is best as it comes off the profit, so lowers your tax burden further. Fiddling expenses to extract cash is a bad idea (though a common one). You won't pull meaningful amounts of cash out of a business via assets and expenses unless you are being somewhat "creative", though being "creative" may not be looked upon with awe if HMRC want to see the books. Not saying a limited company is a bad idea (it's a good one) but if this is a onetime big wedge of cash it will take a while to actually extract it all legitimately that way while minimising tax. (wife has nearly qualified as an accountant and she gets me to read her books and test her so I've absorbed a silly amount of pointless info, though I'm far from knowledgeable) You are correct. However, with everything online these days, any newly formed company needs a computer in order to file its accounts, check its email, etc etc, so a laptop computer and a new printer are perfectly valid purchases for any newly formed company. Buy top of the range macbook pro and that's a couple of grand extracted from the company in the form of a useful asset.