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Website a valid expense for Self-Assessment?

Discussion in 'General Forum' started by JCWeb, Jan 27, 2013.

  1. JCWeb

    JCWeb New Member

    I run a small online e-commerce site for items I manufacture myself. Can I offset the cost of the online site & store against my tax? I upgrade & redesign it every year to 18mths to keep it fresh and interactive.

    I am a sole trader and spent many hours myself designing, creating the site and updating it on a regular basis (security upgrades, new products, search engine optimisation etc). The site and interaction through it (and social networks) is essentially my business and advertising/marketing.

    This has totalled many, many hours of work. I know if I'd have contracted someone to develop the site for me I could claim these costs as expenses but as I have built everything myself, am I able to charge a fair cost for time & development against tax.

    I hadn't considered doing this but was told it could be possible?

    Any advice would be greatly appreciated.

  2. glebe digital

    glebe digital Member

    No chance mate, you can't 'bill yourself' and claim back hypothetical spending.

    If you're Ltd and pay corporation tax, you can claim relief for RnD spending.
    There may be several hoops to jump through. ;)
  3. cheltax5678

    cheltax5678 New Member

    Yes and no

    You can actually charge this time/cost against a Ltd company if you are also set up as a sole trader.

    Sole trader charges Ltd Co for fees and sends invoice say £2000. Ltd Co claims this against it's tax (nothing to do with R & D - websites are perfectly allowable as an expense) and SAVES CT TAX AT 20%.

    However you will have £2000 of income in your sole trader paid to you from the Ltd Co and you will PAY TAX at whatever rate you are at personally so the effect is generally TAX NEUTRAL.

    If the website costs were external then they are perfectly allowable.


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