Many business owners are also keen readers, holding small collections of books, newspapers, periodicals and magazines. If this is you, please read on, there are a few tips to save money on your taxes that you might not know about!
Books and Maintaining Libraries
Maintaining and updating a collection of books used for a business is a tax-deductible expense.
Where something like a professional library is first established and a large number of books are purchased, this is a capital expense and capital allowances may be available to be claimed.
Thereafter, piecemeal additions and replacements should qualify for a revenue deduction.
Trade and Professional Magazines
Similarly, the purchase of trade and professional magazines used for the business is a tax-deductible expense (but some of the considerations in the next section may need to be taken into account), whether they are purchased on an ad hoc basis or by annual subscription
Newspapers and Periodicals
Many businesses buy newspapers and non-trade periodicals to keep in reception areas for visitors and they may also be read by staff and proprietors.
The predominant purpose of buying the newspapers and periodicals is for the business, the cost is tax-deductible and there won’t be any benefit in kind on directors or employees.
If the expense is made primarily for private reasons by the business owners the cost isn’t tax-deductible for an unincorporated business and with a company, there would be a benefit in ind charge unless the expense is disallowed.
For employees and directors, where the expense covers several employees or directors, or includes married couples or civil partners where both are employees or directors, or is partly for the employer’s business and partly in providing a benefit to a director or employee, the cost many be apportioned between them. Employees would then be charged a benefit in kind charge on the value of non-business element unless this is negligible.
Any avid readers out there will realise there’s massive potential for saving here, especially for those who bring in plenty of reading material for their business. Has your accountant told you about this? Are you taking advantage? As always, you can ask me any questions by finding my details on the contact page!
