The vast majority of businesses now have some form of digital footprint and use software to manage their affairs.  However, identifying exactly what tax deductions are available for expenditure on websites and software can be challenging.

In particular, the tax treatment of these expenses will depend upon:

• the type of business (e.g. sole trader, company or partnership);
• whether they are capital or revenue spend; and
• for companies, whether they relate to tangible or intangible assets.

To help businesses and their advisers pick their way through the various possibilities, we’ve produced a short guide to the tax treatment of software and website costs.  This covers all of the above issues, as well as diving into the details of the different kinds of costs which might be incurred.  The guide also includes a summary flowchart, and links to further guidance and reading.

We will be keeping this guide under review.  If you have any suggestions about additional areas it should cover, please send them to [email protected]

This article reflects the position at the date of publication (16 January 2024). If you are reading this at a later date you are advised to check that that position has not changed in the time since.    

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