Business Tip – 21 Tax Allowance

Business Tax Allowancce

We've been asked this question a couple of times now by our clients, so we thought we better write about it!

The short answer is yes, you can claim your seasonal decorations as a tax deductible expense, especially if your business is one in which you regularly have customers visit you.

If you work from home, then you can claim your Halloween/Christmas decorations as a tax deductible expense ONLY for rooms that are used solely for business purposes.

However, if you have your own business premises, then obviously every room is used for business purposes, so you can claim any seasonal decorations you decide to put up against your taxable liability!

In fact, any costs of decorating your business premises will be allowable.

This can even extend to items such as paintings & antiques that you use to decorate areas which will be seen by customers and the general public.

You will need to make a business case for the expenditure, and larger items will only attract relief under the capital allowances system, but, nonetheless, provided you don't purchase a solid gold, diamond-encrusted mummy or pumpkin, you will be able to claim the cost of your Halloween decorations as a deductible business expense.

As always with this sort of thing, if you are every in any doubt, you are better off asking a professional first, contact your accountant for further details.