The use of software within your business may well be as ‘everyday’ as the act of doing business itself. As normal, and essential, that software use and purchases are, they won’t do you much good if the act of paying for it strains your budget to breaking point.
Can I claim?
Mostly no. But please read the conditions.
Are music streaming services deductible? Possibly, it rather depends on your business and what you need this service for.
Subscriptions normally come with specific conditions of use, and Spotify is no different in this regard. Subscriptions with Spotify do not include public broadcast rights, in other words they are for 'your ears only'. What this means, for your business, is that you will not be able to use the service in a way that others can listen in – not even in part.
Also, because Spotify is a personal use service, you may find it difficult to show how it is being used for business in a way that does not violate the terms and conditions as set out by Spotify, and also satisfy the requirements for tax deductions eligibility. Possible exceptions may be music critics; who would have a legitimate use for this kind of subscription within their business.
You just enter the amount on "Computer and Office Equipment -Software", set your private use portion and that’s it - you are ready to go.
It is perfectly acceptable to claim for software, including subscription based platforms. The only proviso is that the software is an integral part of your business.
In the case of subscriptions, you should separate the amount of time the software is used for your business from the amount of time spent using it ‘personally’. This personal use cannot be claimed against, and so it is important that this is accurate.
The kinds of software that would be applicable for this are, unsurprisingly, business related (spreadsheet software, word processing etc - but not all of them are that obvious.
Project management software is also applicable, and the monthly subscription fees that go along with that.
Just about all business today uses software of one kind or another, and for those that need to use software, have to continue to do so in order to remain in business. The whole point of being able to claim back tax on business expenses, such as software, is to help ensure that necessary expenditure doesn’t put you out of business.
One thing that needs to be remembered, however, is that if a subscription is to cover personal use also then this needs to be separated from your business use before you can claim.
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