Are marketing expenses tax deductable?

expenses

As a business owner you can claim allowable business expenses for:

advertising in magazines, newspapers etc.

direct mail/leaflets

bus advertising

facebook ads

google ads

radio ads

remarketing

vehicle signage

website costs

trade journals

professional organisations eg. FSB

Advertising costs, such as TV, radio, and online ads, Printing costs for flyers, brochures, and business cards

Costs for designing and maintaining a website

Social media marketing expenses

Sponsorships of events

Costs of producing promotional materials, such as branded merchandise

Fees paid to marketing consultants or agencies

You cannot claim for:

entertaining

hospitality

gym memberships

payments to political parties

donations to charity, but you may be able to pay for sponsorships

There may be variations depending if you are a sole trader or limited company.

It’s important to keep detailed records of all marketing expenses, including invoices, receipts, contracts, and any other documentation that supports the expenditure. This is necessary for substantiating the deductions during tax filing and in case of an audit. While most marketing expenses are deductible, there might be specific rules and limitations for certain types of marketing costs. For example, the IRS has specific guidelines for deducting costs related to entertainment and gifts, which may overlap with some marketing activities.

Always check with your accountant. Tax laws can be complex and subject to change. It’s always a good idea to consult with a tax professional or accountant to ensure that you are correctly deducting marketing expenses and complying with current tax regulations.

In summary, marketing expenses are typically tax-deductible, provided they are ordinary, necessary, and properly documented.

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