You can expense any postage and packaging costs you pay as part of your business. This applies to raw materials you receive and finished products you send out.
This includes postage incurred on shipping raw materials to you, or costs incurred shipping the finished product to your customers.
Examples of acceptable expenses:
- Postage or shipping you've paid to receive equipment for your business
- Next day delivery on items required urgently for your business.
- Boxes, packets, tape and labels to package items to be sent to customers, including
- any protective pacakging such as bubble wrap
- packaging to enhance the presentation of products for customers, such as tissue or ribbon.
- Amazon Prime if the account it used solely for your business (or a fair proportion of your subscription if it is also used personally).
Specific considerations
If you charge these postage costs on to your customer, don't forget you will have to include it as business income.
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