Are advertising and marketing expenses tax deductible for sole traders?

In most cases, you can claim advertising and marketing costs if you’re a sole trader.

If you’re paying to promote your business, attract customers or keep existing ones, anything you spend will usually qualify as an allowable expense.

But if the real reason for the spending is personal and you try to pass it off as a marketing cost, it won’t qualify.

For an overview of the expenses you can claim if you’re self-employed, start with our main guide: what business expenses can you claim as a sole trader?.

Also take a look at GOV.UK’s overview here: Expenses if you’re self-employed.

Which expenses can you claim for?

The key rule when it comes to business expenses in general is that anything you claim for was used to promote your business.

Examples at a glance

Here are some commonly allowable costs which many self-employed people come across:

• Online advertising. Google Ads, Microsoft Ads, Meta Ads, LinkedIn Promotions, and Marketplace Promoted Listings.
• Website costs. Domain names, hosting, plugins, security tools, basic design and maintenance.
• SEO work. Technical fixes, paid SEO support, and content related to the business site.
• Branding and design. Logo work, packaging design, and product photography used to sell goods or services.
• Printed marketing. Flyers, brochures, signage, menus, posters, vehicle decals.
• Directories and listings. Paid listings and upgrades in trade directories.
• Email marketing tools. Newsletter and list management software for customer communication.

Some business costs you make might not be obviously linked to marketing or advertising, but may show up as “marketing” related, such as payment processing fees.

Some common mistakes

• Mis-describing clothes as “for marketing”. Buying normal clothes to look good in photos or videos is not the same as buying a uniform. You can’t claim for everyday clothes. See our guide to clothing expenses.
• Labelling meals as “client marketing”. Entertaining is a separate expense category and is often disallowed. Labelling the cost as “marketing” does not change the reality. See our guide to entertainment expenses.
• Lifestyle purchases with a logo added. If you had bought it anyway for your personal use, adding your business name to the invoice doesn’t change the reality.
• Mixed personal and business subscriptions. If you use a tool mainly for personal reasons, it’s hard to justify claiming the entire cost against your business profits.

HMRC is actively clamping down on mixed-use expense claims — as this recent news report shows.

Social media, content and subscriptions

If you pay for ads, boosted posts, or professional content that promotes your services, that is usually easy to justify as a business expense.

If you pay for editing software or scheduling tools used to run your business accounts, that is often fine too, as long as the link to your trade is real and you are not funding personal social media use through the business.

Influencers and affiliate promotions

Paying someone to promote your products is advertising. If you have an invoice or payment record that clearly relates to the sale of your goods or services, it is normally allowable.

The key is to keep all of your records and contracts as evidence in case you ever need to respond to an HMRC query.

If you have made payments via an online platform, keep the platform receipts and a screenshot of what you purchased.

If it looks commercial and you can show the link to sales activity, it is easier to defend.

Website creation and bigger projects

Routine website costs, such as hosting, small updates, plugin renewals, and design tweaks, are typically straightforward revenue expenses.

A full rebuild is often still allowable where it is simply replacing or modernising an existing business website. If the purpose is to keep your online presence current and generate work, it will usually fall within normal advertising and marketing costs.

Where it becomes more complicated is when you are not just promoting your business, but paying to build something with ongoing standalone value.

For example, if you pay to build a custom booking system, a members-only platform, or specialist software that your business will rely on long term, the work is not really “marketing”. It is more like building a business asset.

In those cases, the cost may be treated as capital expenditure rather than a day-to-day running cost. That does not always mean there is no tax relief, but it can mean the relief is claimed differently (for example, via capital allowances) rather than being deducted in full as an ordinary expense.

If you are spending serious money on development, make sure the invoice explains exactly what was built.

A breakdown showing design work, functionality, hosting and support is far more useful than a single line saying “digital services”.

Some practical examples

Example 1: Google Ads for lead generation
A local tradesperson spends £150 per month on Google Ads targeting emergency call-outs. The spending is directly linked to sourcing new work. This is normally allowable.

Example 2: business website and email marketing
A freelance consultant pays for hosting, a domain name, and newsletter software used to keep in touch with clients. These are normal marketing overheads and are usually allowable.

Example 3: selling online
An online seller pays for product photography and listing graphics used on sales pages and ads. That is part of selling goods. It is normally allowable. If you are building a platform business, see how to start an eBay business.

Example 4: clothing for “branding”
Buying new outfits and calling it “branding” because you post on Instagram does not turn it into advertising. It is still ordinary clothing, and ordinary clothing is not an allowable expense.

Keep proper and accurate records

It is essential to keep accurate records of all of your business expenses.

If you are required to join the Making Tax Digital scheme from April 2026 onwards, it will become a legal requirement.

• Keep invoices for ads, design work and subscriptions.
• Download monthly statements from ad platforms where possible.
• Make a short note against unusual items so you can explain them later.
• If a cost is partly personal, claim only the business share and keep a note of how you worked it out.

It’s easy to get expenses wrong, especially where costs are partly business and partly personal. If you’re unsure, speak to your accountant before you claim anything. Small mistakes can lead to unexpected tax bills or penalties.