‘Can you claim glasses as a business expense?’ – a question we were recently asked by a client. So, we thought why not write a blog on the topic, as there’s a good chance other small business owners are wondering the same thing!
The short answer to this question is: depending on the use, a pair of glasses can be put through a limited company as a business expense.
Let’s take a look at when glasses can be claimed as a business expense…
We’ll also look at whether you can claim tax relief on eye tests, so if you’re interested in that read on.
*The following information applies to employees and directors of a Limited company but not the self employed.
When are glasses tax deductible?
Glasses can typically be claimed through a limited company when they are exclusively for display screen equipment use. This means that you need the glasses for monitor/screen work only – not for general wear, driving or anything other than screen work.
You need to be able to evidence or prove this fact in some way.
Typically, this would be by an optician completing a form stating you need the glasses for display screen use. You should then retain the evidence in the event of a query from HMRC.
When are glasses not an allowable business expense?
When glasses are needed for uses other than purely display screen/monitor use they are generally not an allowable business expense and you wouldn’t be able to put them through the limited company.
Other uses might include:
- Reading
- Driving
- General everyday use
In this case, glasses are not tax deductible as they are not purely intended for business use, meaning they are not a business expense.
It is all or nothing, which means if you use glasses for both display screen and another use such as driving you will not be able to claim any of the expense as tax deductible in the business. The reason is that there is a ‘duality of purpose’ and the expense cannot therefore be considered wholly and exclusively for business purposes.
Are eye tests tax deductible?
Yes, if you are the director or employee of a limited company, under Health and Safety regulations you can claim an eye test as a business expense, if you use a display screen equipment for one hour or more daily.
To claim for the eye test you need to retain evidence in the form of a receipt and use this to claim the expense.
If you’re interested in finding out more about allowable expenses for limited companies contact us today.
