Amazon prime as a business expense

[movietub]

We order a lot through Amazon and a simple calculation shows that the business would clearly save money if it subscribed to 'prime' due to free next day delivery alone, in addition to various other savings it brings.

But it's bundled with prime video, which has no business benefit, but which I would occasionally make use of (I want to watch their new Top Gear type show really...)!

I wouldn't pay for it personally just for the one to show though. And I would pay for it with the business even if it didn't have the video stuff.

Where do I stand on this? To be frank, as it's clearly 95% for the benefit of the business is it fully deductible? is it any different from sending a personal email from an account paid for by the business, or using a company pen to write a greeting card etc etc?

 

[john1989]

Is your business a company, sole trader or something else?

 

[movietub]

Is your business a company, sole trader or something else?

It's ltd company, I am a shareholder. Does that have any effect on what can be claimed as a business expense?

 

[TimCaprica]

I think it is pretty common for businesses to treat Amazon Prime subscriptions as a business expense.

It could potentially fail the 'wholly and exclusively' test if you are using it personally too but I think ultimately it's £79 per year and easy to justify from a commercial standpoint so it would be a very over-zealous tax inspector to spend more than 30 seconds arguing the point.

 

[john1989]

I think it is pretty common for businesses to treat Amazon Prime subscriptions as a business expense.

It could potentially fail the 'wholly and exclusively' test if you are using it personally too but I think ultimately it's £79 per year and easy to justify from a commercial standpoint so it would be a very over-zealous tax inspector to spend more than 30 seconds arguing the point.

I didn't realise that was the cost.

Yes, I agree with your analysis.

 

[David Griffiths]

I think that the key matter is that the subscription must be in the name of the company. It would then be fully allowable. The question of private use by the director would be a matter for returning as a benefit in kind, if at all, and would probably be ignored as trivial.

If the subscription is in the director's name. then it is not tax deductible. If the company pays a subscription in the director's name then that goes through PAYE subject to full PAYE and Class 1 NIC

 

[movietub]

Thanks to all of you for your input.

It will certainly be in the company name and paid for by the company, and it will be ordered specifically for the companies benefit.

And as we are a company that works in the film and TV industry we may very well be able to make use of the media content they offer. From a research point of view.