Tax Tip - Week 7 - Is your broadband connection tax effective ?
For Professional Contractors and Freelancers broadband is an essential business tool, but that does not make it tax deductible unless HMRC accept your circumstances as interpret for a tax deductible broadband connection.
There are quite a few factors to consider:-
1. is it a Fixed Wire (ADSL/DSL ) connection
2. Is it bundled with a telephone line ?
3. Is it a wireless connection ( dongle ) ?
4. Is the contract in the name of the Director or the Company ?
5. Is there any "personal use" of the connection.
All these factors need to be considered before assuming that this essential business cost is a tax deductible expense for a professional contractor and Freelancer and we provide detailed guidance on Broadband Internet.