It’s a question we get asked a lot. You use your glasses when you’re working (reading and staring at a screen) so it seems reasonable that the company should pay. But, as with many things in the tax world, the reality is a little more complicated. Focus in on the detail and you’ll find that in most cases, putting glasses through your company creates more admin and a bigger personal tax bill than it’s worth.
Can my company pay for my eye test?
In short, yes. This one is straightforward. If your work mainly involves looking at a screen, which describes most of our clients, the company can pay for the eye test. No personal tax implications, no extra admin. Just put the receipt through as usual.
Which glasses can I put through my company?
This is where it gets more involved, because it depends on what type of glasses they are.
Everyday glasses
This is the type of glasses that you wear for most of the day, for driving, reading, watching the TV, scrolling your phone, that kind of thing. This type of glasses is not an allowable company expense. The personal use is too significant.
If you put them through your company, you’ll end up with a personal tax bill on the value of the glasses, and your company will pay extra National Insurance on top. There’s extra admin involved too.
By the time you’ve added it all up, any corporation tax savings you were hoping for have usually disappeared. Our advice, for the vast majority of clients, is to just pay for everyday glasses personally.
Glasses for visual display use (i.e. a screen)
This is the one situation where it is viable to put your glasses through your limited company.
If your eye test shows you need a specific pair for working on a computer monitor/screen (and they’re genuinely no use to you outside of that) you fall within the rules. The company can pay, you get the corporation tax deduction, and there’s no personal tax to worry about.
One thing to remember to do is to ask the optician to clearly state on either the prescription or the receipt that the glasses are specifically for screen use. If HMRC ever questions the expense, you can then back up your claim.
Varifocals
Varifocals are lenses that cover multiple distances in one pair – near, intermediate, and far – making them useful for both everyday life and screen work.
In theory, you could split the cost of varifocals between personal and company use, putting only the screen-specific portion through your company. In practice, this only works if the optician provides a properly itemised breakdown on the invoice showing exactly what proportion of the cost relates to screen use. If they don’t, the whole amount ends up being treated as a personal benefit.
The reality is that the paperwork and effort involved in claiming a small portion of the cost rarely makes it worthwhile. In most cases our advice is to just pay for varifocals personally.
Blue light glasses
There’s content online suggesting you can put blue light glasses through your company. However, the reality here is that blue light glasses without a corrective prescription aren’t considered glasses in the sense that we know them. They aren’t used to correct your vision, just protect it. If you put them through the company, you’re in the same position as with everyday glasses, a personal tax bill and extra National Insurance.
The one exception is if you already have a screen-only corrective prescription and you’re adding a blue light coating on top. In that case, the whole pair is arguably for screen use, but we still suggest asking the optician to break the cost down clearly on the invoice. If it’s just a blue light coating on everyday glasses, that’s the same scenario as above (more admin, more tax).
What about VAT on glasses?
Again, there is a bit of complexity here. The optician’s professional fees are VAT-free, however. the frames and lenses have VAT added to the cost. If you are VAT registered, you can only claim the VAT on glasses that you put through your limited company, so this would only apply to screen-only glasses.
Focussing in on glasses
The headline here is that eye tests screen-specific glasses can go through your limited company. Everything else should be paid for personally. If you’re not sure how your glasses are categorised, check with your optician and remember to ask them to clearly state what the glasses will be used for on the prescription and the receipt.
Still feel in the dark? Get in touch and we’ll help you see the rules clearly.
