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Is an iPod tax deductible? PDF Print E-mail
Friday, 29 February 2008 00:00
If you buy an iPod personally, you cannot claim a tax deduction. However if your employer buys it, they get a tax deduction. If you buy it personally and get your employer to either reimburse you or pay the supplier direct, your employer will be able to claim a tax deduction but you will be taxed on the amount paid as a benefit in kind.

Is there a way around this?

Yes there is!

For an expense to be tax deductible, it has to be wholly and exclusively incurred for the purposes of the business. If you can show that the iPod is for the sole purpose of enabling you to perform the duties of your employment and that any private use will not be significant, get your employer to buy it for you. An iPod can be used as a hard drive for storing work related data and for downloading work-related “training” material. As a precaution, keep a record of all work-related downloads/podcasts you have taken advantage of. 

To clarify ownership of the iPod, your company name can be engraved on the back of the iPod.

You employer needs to have a company policy in place covering private use of electronic devices provided to employees and directors.
 
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