how much is spotify premium is there tax

Netflix and Spotify have a dual purpose – they are business and personal – which means that they do not meet the “exclusively” criteria – which means that we cannot claim them for tax purposes. The reason is that they fall foul of a piece of the tax legislation which says that for expenses to be allowed for tax purposes they must be incurred “incurred wholly and exclusively for the purposes of the trade, profession or vocation”. You see, people often say to their friends – well I claimed XYZ in my accounts – but then don’t realize that their Chartered Accountant then excluded it when it came to calculating tax.Īnd that is what we have to do with subscriptions like Netflix and Spotify. So, perhaps watching documentaries on Netflix, or listening to music on Spotify helps them concentrate.Īlthough there is nothing actually stopping you from putting these through your annual accounts, they will then be disallowed (ie excluded from being an allowed expense) when it comes to the tax computation.

I speak to a number of online entrepreneurs who want to claim things like Spotify and Netflix for tax purposes – the argument being that they use them for business too.

How much is spotify premium is there tax