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I have a hand held reader model can281. Its fine for diagnosing and erasing but as sssstew said vagcom is the one to have. It must be the canbus compatible one too. But
A laptop is £250
The rosstech lead is around £150
Quite expensive but worth if it funds allow.
Somebody correct me if I am wrong about the lead, then I can get one!
Glynn
 
i have the ebay one £15 wich allows me to use as the real thing .

also have a mac tools handheld , wich is good for reading and clearing faults ,

but this cost a bit , (currently borrowing it for my other car ,