Is The PPE We Purchase For Customers Tax Deductible?

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When it comes to our economy, we are also in a dark period of history. We may not be on the worse side, but it is getting close. This is why many companies are doing their best to keep their heads above water. One of the ways to do so is through tax deductions. We all know that taxes here are quite high compared to other countries, so a little help goes a long way.

Customers’ Tax Deductible

PPEs or personal protective equipment is something that many people need in their jobs these days. It is used to keep us from getting infected by anything that is airborne and can touch our skin. This is already a usual get-up for those who are working in the medical field. However, everything changed when this pandemic happened as people found themselves wearing it even if they are not in medical practice.

It is the responsibility of the employees to give these PPEs to their respective employers. After all, they are needed to keep the business running. It is not tax-deductible, however, and you need to compensate your employees for it. If it is impossible to do business without protection, then even more so. However, what about the customers?

Providing PPE for customers is not tax-deductible.

This is because it is part of your responsibility as a business to offer this to your employees. It does not matter if it is not used in a medical facility or otherwise. As long as you need it to perform a service, the company or business must provide for the customer. This also includes hair salons, massage parlours and places wherein skin-to-skin contact is necessary for the service.

However, you can always charge your customer for the PPEs. After all, it is a part of the service, so they may need to pay a little extra. This might turn off some customers, but the operations must continue. If you have purchased the PPEs in bulk from 1 May 2020 until 31 July 2020, your purchase is supposed to be VAT-free. This is per the regulations provided by HMRC.

It has been one of the main goals of our government to try and help alleviate the situation due to this virus. There have been a lot of handouts, although this is still rather disputed if it made it to the right people. However, it is undeniable that help has been provided, but this is not going to last. The virus is still out there, and we need to be more vigilant.

About the Author

Annette Ferguson 

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.