Can I buy an Apple watch through my business?
We have a client who is a Freelance web developer. He has lots of IT gears and the whole Apple ecosystem.
He bought an Apple watch and did not claim it through the business as he thought it was not a tax-deductible expense.
The client recently appointed us to prepare his company accounts and I thought to write this article to clarify the matter for business owners.
Computer software and hardware make your business and personal life easy and more manageable.
Phones and Tablets are allowable expenses, and the Apple Watch has features similar to an iPhone or iPad.
It can boost your business productivity and work more productively.
It has a built-in speaker and microphone that gives you a hands-free ability to take that conference call while on the move.
Calendar alerts for business appointments, business-related texts, business calls, and work email.
A social media for your business, and Apple Pay for quick business purchases.
With all these features, this is probably a must-have watch not for App developers only.
The cost of an Apple watch is £369 VAT inclusive, and it would be ideal if you could get the watch as a tax-deductible expense.
This would grant you a £61.50 VAT refund £58.43 reduction in your corporation tax bill. Therefore, decreasing the watch price by 33% equals £247.23.
With all of these features and tax savings, is it fair to say a smartwatch is a tax-deductible expense in the UK?
The smartwatch has the features to be claimed as a business expense and should not be across HMRC rules.
It would always be helpful to speak to professionals to help you through your business journey.