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Microsoft: Xbox One Is A 'Justifiable Business Expense'

Jonathan Lester
Microsoft, Xbox One

Microsoft: Xbox One Is A 'Justifiable Business Expense'

Perhaps realising that their haphazard release campaign has left many gamers nonplussed, Microsoft are pitching the Xbox One to a new demographic: small business owners.

Microsoft MVP (volunteer community managers and developers) Marques Lyons claims that the Xbox One will be a "justifiable" expense for the workplace.

“As the owner of a small business, you find great value in your computer and your phone," Lyons writes in a new blog post. "Between the two of them you are prepped for presentations, up to date on your appointments and able to create documents with relative ease. However, let me throw another device into that mix: The Xbox One.

“What is being positioned as an excellent entertainment device can be just as enticing for you and your small business. In fact, it’s entirely justifiable to make the Xbox One a business expense.

“The Xbox One, priced at $499, is an affordable option for small business owners, as there are many features built into the console that could help it rival even the most modest of video conferencing and networking platforms.” These features reportedly include Skype, Internet Explorer, SkyDrive, Wi-Fi Direct and Office web applications.

To be honest, I'm not personally convinced that this pitch holds water, since every PC workstation includes these apps as standard alone with, you know, a keyboard. On the flip-side, however, I bet that plenty of small business owners will be very keen to buy an Xbox One and write it off against tax.

Add a comment3 comments
Late  Jul. 11, 2013 at 14:38

Think very carefully or get proper advice before trying this one on.

As yet, I don't believe HMRC have issued any strict guidelines on the matter, so the validity of any claim for the console as a business expense is completely open to interpretation.

You can absolutely claim it as a tax-deductible expense if there's some business use - and you can probably reclaim VAT, too. But if there's any element of private use then that needs to be accounted for. And let's be honest, here - the vast majority* of us are going to get significantly more private use out of an xb1 than business use.

And if you're only claiming about 25% of it as a business asset you need to consider whether it's worth putting your dukes up against the tax man to save yourself about twenty quid in tax...

*There will of course be some industries where there's justifiably a lot of business use on a device like this. They are the exception, not the rule.

Last edited by Late, Jul. 11, 2013 at 14:56
t4v  Jul. 11, 2013 at 15:19

Looks like that post has been deleted

JonLester  Jul. 11, 2013 at 15:20

@Late: Heh, I wasn't really advocating tax fraud. However, that's some sound advice right there.

@t4v: Try refreshing the page?

Last edited by JonLester, Jul. 11, 2013 at 15:21

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