Quick Answer
Yes. An EPOS system is tax deductible in the UK. Hardware (till, receipt printer, card machine) qualifies for the Annual Investment Allowance (AIA). Monthly software subscriptions are deductible as a revenue expense. One-time software purchases may qualify for capital allowances.
How EPOS hardware is treated for UK tax
EPOS hardware — till terminals, touchscreens, receipt printers, barcode scanners, and card machines — are capital assets. Under the Annual Investment Allowance (AIA), you can deduct the full cost in the year of purchase, up to the AIA limit (currently £1 million/year). This means a £999 EPOS system is fully deductible in year one.
How EPOS software is treated for UK tax
Monthly EPOS subscriptions are revenue expenses — fully deductible against taxable profit in the year they're incurred. A one-time software licence (like EPOS Direct's £399 outright option) may be treated as a capital asset and deducted via AIA or capital allowances depending on HMRC guidance — consult your accountant.
How to claim your EPOS as a tax expense
Keep all purchase invoices and receipts for your EPOS system. Monthly subscription invoices are deducted as a business expense on your self-assessment or corporation tax return. Capital purchases are entered as AIA claims.
- ✓Keep all purchase invoices — hardware and software separately
- ✓Record monthly subscription payments as operating expenses
- ✓For AIA claims, note the purchase date and use description
- ✓Consult your accountant or bookkeeper for your specific circumstances
Complete EPOS + Teya Card Terminal
£549 + VAT
One-time — or own outright from £399 — no monthly software fees ever
- ✓ Hardware + software included
- ✓ Teya card terminal (1% rate)
- ✓ No monthly software fees
- ✓ No long-term contracts
- ✓ Works offline
- ✓ UK-based support team
Frequently Asked Questions
Can I claim an EPOS system as a business expense?
Yes. EPOS systems are a legitimate business expense for UK businesses. Hardware qualifies for the Annual Investment Allowance (AIA) for full first-year deduction, and monthly software subscriptions are deductible as revenue expenses.
Is VAT reclaimable on an EPOS system?
Yes, if you're VAT-registered. You can reclaim the VAT on EPOS hardware and software purchases as input tax. EPOS Direct provides VAT invoices for all purchases and monthly subscriptions.
Can a sole trader claim EPOS as a tax deduction?
Yes. Sole traders can deduct EPOS costs on their self-assessment tax return. Monthly subscriptions go in the 'Other expenses' section; capital equipment may qualify for AIA in the 'Capital allowances' section.
Does it matter if I buy outright or monthly for tax purposes?
Buying monthly is simpler from a tax perspective — subscriptions are a straightforward revenue expense. Buying outright requires an AIA or capital allowance claim, which is slightly more involved but often more beneficial in year one. Your accountant can advise on which is better for your situation.