Question: My clients company pays a business subscription to Linkedin, the business networking site. It allows them to make business contacts that generate work for them. Is the Linkedin subscription a tax allowable expense for their company?
BKN Answer: The Linkedin subscription is tax allowable for your clients company as it is a means to generate work for the business. However, there may be a benefit in kind charge for your client if the Linkedin subscription is raised in their name rather than in the name of your clients company. If this is the case the company is paying your clients personal liability (the subscription fee). As Linkedin does not appear on the list of approved professional organisations whose subscriptions are tax allowable for employees, the Taxman will argue that there should be a personal tax charge. It will be necessary to prove that there is only a business purpose to the subscription.