Are Glasses Tax Deductible? A Guide to Claiming Glasses as a Business Expense in the UK
Are glasses tax deductible for business owners in the UK? The answer is yes, however, there are multiple considerations, including where and how the glasses are used. As an accountant working closely with limited companies, sole traders, and contractors across the UK, questions regarding whether reading glasses or eye test costs can be claimed as a business expense frequently occur.
So let's explore whether you can claim reading glasses as a tax-deductible expense, in line with HM Revenue and Customs (HMRC) guidelines.
First and foremost, it's crucial to understand that allowable costs must relate wholly and exclusively to work purposes. Tax rules are clear about expenses needing to be purely for employment duties with no element of personal use.
Can Glasses Be Claimed as a Business Expense?
To qualify, eye tests and corrective glasses must be directly related to your job. For instance, if you need spectacles to view screens or review printed materials required for your role, it may be possible to make a claim.
That said, eligibility depends on the concept of duality of purpose. If you use the same spectacles for work and personal reading at home, it becomes difficult to justify the proportion of the cost as an allowable claim.
Before buying spectacles, consider booking an eyesight test with a qualified optician. If the test confirms that you need glasses specifically for viewing a screen or performing visual tasks at work, both the costs of eye tests and the special glasses may qualify as an allowable claim.
How to Claim Glasses as a Business Expense (According to HMRC)
To claim the expense of reading glasses, you should:
Keep Receipts: Maintain records of the purchase of the glasses and eye test, including receipts and any prescriptions.
Document the Necessity: It may be beneficial to keep a record or memo stating the reason these glasses are required for business purposes, especially if an eye test report specifies the need for glasses during work activities.
File Appropriately: Include the cost of the glasses and the eye test as part of your company's accounts, categorising them as office expenses or other relevant categories based on your accountant's advice or where you think they are most likely to be disclosed in the financial statements.
Include in Financial Statements: Add these amounts under the appropriate category—often “health and safety” or “office costs”—based on advice from your accountant.
If you employ staff, you can provide eye tests as an allowable cost to your employees without it being treated as a benefit in kind. However, any corrective glasses that are tax deductible only apply if they’re used solely during screen-based work and not for general use.
Also, consider the P11D and Class 1A contribution implications if spectacles are provided but not used solely for display screen use.
Under the HMRC glasses allowance, if your company pays for an eye test and corrective glasses are needed only for screen use, then the cost may be allowable. However, if the glasses are also used outside of work, they would be considered a personal benefit and not deductible.
Are Eyeglasses Tax Deductible with an Eye Test?
When deciding if corrective glasses are tax deductible, it’s important to distinguish between:
The cost of the eyesight test: Typically allowable if you’re required to use display screen equipment or sit behind computer screens for more than one hour daily.
The cost of glasses: This must meet the condition of being solely for work purposes to qualify. If you use them for general use (e.g., reading at home), you may not be able to claim a proportion back.
If you are self-employed, be cautious. The income tax rules on allowable expenses are stricter because personal and work use become more complex to separate.
Is There VAT on Glasses and Can It Be Reclaimed?
In most cases, special prescription spectacles are exempt from VAT. This means you won’t pay VAT and thus can’t reclaim it. However, optional add-ons like blue light filters may be partially VAT-rated.
Consult your accountant to determine if you’ve incurred VAT on any non-prescription elements that can be allocated solely to your job.
Final Thoughts
The principle of exclusivity for business use is critical in determining whether such expenses are tax-deductible. As always, it's advisable to consult to ensure compliance with HMRC regulations and to receive tailored advice based on your specific circumstances.
You can read what HMRC themselves say here.
If you're wondering, "Are glasses tax deductible?", the answer depends on your role, your business setup, and how the glasses are used. For expert advice on what qualifies as an allowable business expense, contact Anlo Financial Solutions today.