Work equipment and software

How to expense the tools your are using for your freelance business?

Written by Fanny Silheres
Updated over a week ago

Buying the tools you need to perform your work could have a significant cost for your self-employed business. You can reduce the burden of the cost by declaring the purchases as expenses.

Depending on the profession, the definition of work equipment will vary. 

Examples of work equipment

Common examples of work equipment include:

  • Computers, laptops and notebooks

  • Devices and machinery (e.g. a Camera for a photographer)

  • Software

  • Work clothes (including cleaning)

  • Mobile phone (if heavily used for the business)

What if I use it for both work and my private life?

The general rule is that work equipment related to your freelance business is tax deductible. 

You will be able to fully deduct your work equipment if you use it for work purposes at least 90% of the time. Below 90% you should calculate the percentage of usage for business purposes.

Example: You bought a laptop which you use for both private and professional purposes. Let's say that on an average week you use the laptop at work for 48hrs and another 16hrs at home.  You can then calculate your deductible costs like this:
48 hrs of professional use / 64 hrs of total timed used = 75% of laptop cost is tax deductible. 

Expensive equipment over 800€

If you buy equipment for less than 800€, the whole expense is immediately tax deductible.
Expensive equipment over 800€ is treated differently. The equipment is assumed to reduce its value over time due to wear and tear. The steady reduction in value of the product is called depreciation.

Sorted tax guides are provided without liability and do not replace a tax advisor.
To get an accurate answer for your specific case, please consult a tax advisor.
You can always
ask one of tax advisors on the Sorted platform.

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