The tax deductibility of the costs of a commercial website
The Internet is a cornerstone of our daily life these days. Indeed, many businesses are so dependent on their ‘online’ presence that they couldn’t survive without it writes
Businesses use the Internet in different ways. Some businesses use their website just for promotions and marketing, others to provide location and contact details. Increasingly, businesses require e-commerce capabilities as they generate large amounts of revenue through online sales.
Depending on whether a complex or basic web presence is needed by a business, the costs involved in creating, running and maintaining a website can vary greatly. Therefore estimating the financial demands of website development and maintenance — and the resulting tax consequences — can be far from straightforward.
So, if you’re starting out a business and creating a website from scratch or if you’re running an established business but need to upgrade your website to take advantage of e-commerce capabilities or to bring the look of the site into line with current web design trends, you can add tax to the long list of things to think about!