So, you subscribe to Adobe Creative Cloud to produce the best results for your clients. Or perhaps you’ve invested in other software, tools or online subscription services to help you get the job done, but you aren’t sure what you can and can’t declare on your taxes.
Helping you complete self-assessment tax returns the easy way, SimpleTax have put together this guide to claiming software such as Adobe Creative Cloud as business expenditure.
Can I claim?
Yes, but please see the conditions below.
You can class your Adobe Creative Cloud subscription is an important part of your business, and you can set the entire cost of this against your annual income as long as you use it solely for work purposes.
If you use this, or any other software online service for both business and personal use, you must only declare the percentage that you use for your work.
Let’s say for example, that you subscribe to the £70 monthly option for a full year, rounding out at a total of £840. 60% of the time, your Adobe subscription is used for work, the remaining 40% is spent on personal projects. That means you’d be able to claim £540 (60% of £840) as a business expense.
As a self-employed professional, simply select "Computer and Office Equipment", then "Software". To make things even easier for you, we’ve even included the option to include the percentage of personal use. You give us the stats, and let us do the rest for you.
Can I claim other software programmes on my tax return?
Yes. As above, if you use said software for business only, you can offset the full cost. If you use it for both work and personal use, then you’ll need to define the percentage of that personal use and subtract it from the total amount.
SimpleTax takes all the stress and confusion out of declaring software subscriptions on your tax return.
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