Publications - Our 3 Favourite Tax Tips!
This blog post is full of good news for all those businesses that incur costs on books, publications or newspaper subscriptions.
These for the most part are an allowable business expense for tax purposes for both limited companies and sole traders, but with a few caveats.
So what are the tax tips to consider when incurring costs on books, newspapers or magazines to help your business become more educated and informed?
Publications - Our Three Favourite Tax Tips For Staying Informed!
Publications Costs Tip 1 - Books
Books used for business will be a tax deductible expense.
If you are starting a business you might wish to establish a professional library to help you conduct your business. The Taxman might expect this initial cost to be treated as a fixed asset on which capital allowances are claimed on, but any further additions or replacements should qualify for a revenue deduction.
Publications Costs Tip 2 - Trade Magazines
Trade or professional magazines use for for business will also be a tax deductible expense whether purchased as a one-off or as subscription.
Publications Costs Tip 3 - Newspapers
Many businesses buy newspapers and non-trade publications to keep in receptions areas to entertain visitors. These can of course be read by employees, directors or business owners.
If the predominant purpose of buying these publications is for the business, then the cost will be tax deductible and there will not be any benefit in kind levied on directors or employees.
If the business purpose is secondary, then the cost will not be tax deductible. For limited companies, there will be a benefit in kind on those who read these newspapers, but the Taxman will often be prepared to accept this is as insignificant and not required this to be reported to him.
Additional bonus tax tip - Just like newspapers brought to occupy visitors to your business, TV screens showing Sky News or similar are now a familiar feature in many reception areas. As with print, if the subscription expense is predominantly for business purposes, then any personal benefit for business owners, directors or employees will be disregarded. The TV itself will of course qualify for capital allowances.
Our Publications Costs Call To Action
Staying on top of the latest trends in your industry is something that all businesses need to do.
Spending money on books, newspapers or trade magazines are all tax deductible expenses if incurred for the purpose of business. As long as you are aware of the caveats noted above you can spend money to educate and inform yourself in your business.
If you know of any other great tax tips relating to publications or subscriptions that can be shared with our readers then let us know via the comments or through LinkedIn.
The PJW Call To Action
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Remember - Don’t Leave a TIP with the Taxman!