Marketing & advertising
The cost of promoting your business — online ads, a website, printed materials, listings — is generally an allowable running cost.
Sole traderAllowable
Ltd companyAllowable
EmployeeNot allowable
Conditions
- Spending to promote the business is allowable — online ads (Google, Meta, LinkedIn), a business website's running costs (domain, hosting, maintenance), SEO, branding and design, printed materials such as flyers and business cards, signage and vehicle livery, directory listings and email marketing tools.
- Routine website costs are revenue and allowable, but a major new website build that creates a lasting asset can be capital — relieved differently rather than deducted in full. The same can apply to a substantial rebrand or logo design.
- Sponsorship is allowable where it genuinely generates publicity for the business, with your name or logo displayed, rather than being a personal donation.
- Watch the line with entertainment and gifts: hospitality dressed up as marketing is disallowed, and a promotional gift is only allowable if it costs under £50 per person a year, carries your business's advert or logo, and is not food, drink or a voucher.
Common mistakes
- Treating significant website development as a simple expense when part of it may be capital.
- Claiming a sponsorship that is really a personal donation with no business publicity.
- Slipping client hospitality into the marketing budget — entertainment is disallowed even when it looks like promotion.
What to keep
- Invoices for advertising, design and platform spend.
Real-world example
A new business runs a social media advertising campaign and prints business cards. These promotional costs are allowable against the business.
Frequently asked
Is the cost of building a website allowable?
Ongoing running and maintenance costs are usually allowable, while substantial build costs that create a lasting asset may be treated as capital. The split can be worth confirming.
Can I claim branded gifts I give to customers?
Sometimes. A promotional gift is allowable only if it costs under £50 per person a year, carries a clear advert or logo for your business, and isn't food, drink, tobacco or a voucher. Go outside those limits and it becomes disallowed business entertainment.
Not sure how this applies to you?
The rules shift with your circumstances. A qualified accountant can confirm what you can claim and handle it for you.
Find an accountantRelated allowances
Source: HMRC guidance · Last checked 2026-06-17
This page is general information based on HMRC published guidance, not tax advice. Status shown is a plain-English summary — your own position can differ. Always check the HMRC source above and speak to a qualified accountant before making a claim.