Can I claim expenses for business-related email marketing tools?

Can I claim expenses for business-related email marketing tools?

Email marketing tools have become a core part of how many businesses find customers, nurture leads, announce products, and maintain relationships. Whether you run an online shop, a consultancy, a trades business, or a growing startup, you might rely on platforms that help you design newsletters, manage subscriber lists, segment audiences, automate follow-ups, test subject lines, and track performance. Because these tools are used to generate income, it’s natural to ask: can you claim the cost as a business expense?

In many cases, yes—business-related email marketing tools are likely to be deductible as a business expense. The important word is “business-related.” Tax systems generally allow you to deduct costs that are incurred wholly and exclusively for the purpose of running your business (or, in other jurisdictions, “ordinary and necessary” for business). The exact wording and rules vary by country, but the underlying idea is similar: if the expense supports your trading activity and isn’t primarily personal, it may be deductible.

That said, there are nuances. The way you use the tool matters, the type of business structure you have can affect how you claim it, and there are common pitfalls—especially around mixed personal and business use, bundled subscriptions, and tools that include additional services like design assets or customer relationship management features. This article breaks down what typically qualifies, what documentation to keep, how to handle edge cases, and practical steps to stay compliant and confident.

What counts as an “email marketing tool” expense?

Email marketing tools aren’t limited to the platform you use to send newsletters. The category can include a range of software and related services, provided they’re used for business marketing or customer communications. Examples include:

1) Subscription fees for email marketing platforms that send campaigns and manage lists.

2) Add-ons for automation, advanced segmentation, A/B testing, deliverability enhancements, and dedicated IP addresses.

3) Tools used to build email templates, such as drag-and-drop builders, branded design libraries, and code editors specifically used for email creation.

4) Integrations that connect your email tool to your website, e-commerce platform, booking system, or CRM, where those integration fees are separately billed.

5) Ancillary marketing services tied directly to email campaigns, such as list validation services, deliverability monitoring, or spam testing tools.

6) Stock images, icons, or design assets purchased specifically for emails (when not used broadly for personal purposes).

7) Contractor or freelancer costs for email marketing work (copywriting, design, strategy, setup, automation), typically claimed as professional services rather than “software,” but still part of your marketing spend.

Whether a particular item is deductible depends on its business purpose. For example, a subscription to a general graphic design tool might be deductible if you use it mainly to design marketing emails and other business materials. But if you use the same tool heavily for personal projects, you may need to apportion the cost and claim only the business-related portion.

The core test: is it incurred for business purposes?

Most tax authorities evaluate business deductions using a “business purpose” standard. In practical terms, ask yourself:

Is this expense connected to earning business income or running the business?

Would you have bought it if you didn’t run the business?

Is there a clear, reasonable link between the tool and business activities like marketing, sales, customer retention, or client communication?

If the answer is yes, you’re usually in a strong position. Email marketing tools directly support marketing and sales activities, and marketing is commonly regarded as a legitimate business function. A recurring subscription fee for software used to send campaigns to customers is typically straightforward.

Where it becomes less straightforward is when the tool has mixed use (part business, part personal), when it’s bundled with personal services, or when the subscription includes non-business features that you mainly use personally.

Common scenarios and how they’re usually treated

Scenario 1: You use the tool only for business marketing

This is the simplest case. If you subscribe to an email marketing platform and use it exclusively to communicate with customers or prospects, the full cost is typically claimable as a business expense. The same often applies to add-ons like automation or additional contacts, assuming they’re required for your campaigns.

The practical key is documentation. Keep invoices, receipts, and proof of payment. Also, ensure the billing name aligns with the business where possible, and the email account used to manage the subscription is clearly tied to business operations.

Scenario 2: You use the tool for both business and personal emails

Many tools are flexible. You might use one platform to send your business newsletter but also maintain a personal mailing list for a club, community group, or hobby project. In mixed-use cases, you usually should claim only the portion that relates to business.

How do you apportion fairly? There isn’t always a single mandated method, but reasonable approaches often include:

Splitting by proportion of contacts: If 80% of your contact list is business-related and 20% is personal, you may claim 80%.

Splitting by usage: If you send 10 campaigns per month and 8 are business, claim 80%.

Splitting by feature reliance: If premium features are only used for business automations, you might justify a higher business percentage even if some contacts are personal.

Whatever method you choose, consistency matters. Document your reasoning and keep evidence (like campaign logs or contact breakdowns) in case you’re ever asked to support your claim.

Scenario 3: The subscription is bundled (email + CRM + ads + design)

Some platforms bundle email marketing with CRM, landing pages, SMS, ad audiences, appointment scheduling, or even a website builder. If you use the bundle primarily for business, the full subscription may still be deductible. If part of the bundle is personal, apportioning may be appropriate.

A good practical rule: if the bundle is a single price and it is purchased for business operations, the default is often that it’s a business expense. But if you knowingly use a significant portion for personal activities, it’s safer to apportion to reflect reality. If the provider offers an itemized invoice or separate add-on pricing, keep that documentation as it makes your position easier to justify.

Scenario 4: You pay annually upfront

Annual plans are common and often discounted. Many tax systems allow you to deduct expenses in the period they are incurred, but there can be rules about prepayments—especially if the prepayment extends significantly into a future period or crosses a tax year boundary. The treatment can depend on local rules, business size, accounting method (cash vs accrual), and the length of the benefit.

In simple terms, many small businesses using cash-basis accounting claim the expense when paid. Others may need to spread it across the period the subscription covers. The safest approach is to follow the accounting rules that apply to your business and keep the invoice date and coverage period clearly documented.

Scenario 5: You are just starting out and haven’t made sales yet

Startup and pre-trading expenses can be tricky, but marketing tools purchased as part of setting up the business are often still potentially deductible, depending on local rules. The key question is whether the expense is incurred in preparation for a genuine business activity and whether the business actually begins trading. Some jurisdictions allow certain pre-trading expenses to be treated as if incurred on the first day of trading; others have more limited rules.

Practically, if you’re building your mailing list and preparing campaigns before launch, keep clear evidence that you’re establishing the business (business plan, website build, product development timeline, marketing strategy). That helps show the expense is connected to a real business activity rather than a hobby.

Scenario 6: You use the tool to send invoices or operational emails, not marketing

Even if your emails aren’t promotional, software used for business communications can still be deductible. For example, if you use an emailing platform to send appointment reminders, onboarding sequences, or customer updates, it may still qualify as a business expense. In many tax systems, the label “marketing” is less important than the business purpose.

If the platform is used to deliver core business communications, treat it as a business software expense, just like accounting software or scheduling tools.

What category does it fall under in your books?

In bookkeeping, email marketing tools are usually recorded as one of the following:

Marketing and advertising expenses

Software subscriptions (or “software as a service”)

Office or administrative expenses (less common, but sometimes used)

For most businesses, “Marketing” or “Advertising” is a clean, intuitive category. If your accounting system prefers “Software subscriptions,” that can also be suitable, especially if you group SaaS tools together. The important thing is consistency and clarity. If your financial statements need to show marketing spend separately, you might classify it as marketing. If you prefer to track all SaaS in one place, you might classify it there and add a note.

If you work with an accountant or bookkeeper, align with their preferred chart of accounts so reporting stays consistent year to year.

Is it ever a capital expense rather than a deductible expense?

Most email marketing tools are recurring subscriptions, which are typically treated as operating expenses rather than capital assets. Capital expenses usually involve acquiring or improving a long-term asset that provides benefit over multiple years—like buying equipment, purchasing software licenses that you own outright, or building a bespoke system.

However, there are edge cases where capital treatment might be considered, such as:

Paying a large one-time fee to build a custom email automation system or bespoke integration that has long-term value.

Purchasing a perpetual software license (less common in modern email marketing but not impossible) rather than paying a monthly subscription.

Paying substantial setup or implementation fees for complex systems, especially in larger businesses using accrual accounting.

If you are paying for a significant build that creates a lasting asset (for example, a custom-coded system owned by your business), some jurisdictions may treat it differently from a normal subscription. In that case, it may be depreciated or amortized over time rather than deducted immediately. If your spend is substantial or unusual, it’s wise to treat it carefully and consider professional advice.

What about VAT/GST/sales tax on the subscription?

Indirect taxes can add complexity. Whether you can reclaim VAT/GST or treat sales tax differently depends on your registration status and local rules. If your business is registered for VAT/GST (or the equivalent), you may be able to reclaim the tax portion on business purchases, provided the invoice meets the requirements and the purchase is for business use.

Things to watch for:

Supplier location: Many email marketing platforms are international. The tax treatment can differ for cross-border digital services.

Correct business details: Ensure invoices show your business name and address where required.

Place of supply rules: Some systems handle VAT/GST through reverse charge mechanisms or local digital services rules.

Mixed use: If you apportion the subscription for business vs personal use, that may affect how much VAT/GST you can reclaim.

If you’re not registered for VAT/GST, you typically treat the full gross amount as the expense, including the tax charged. Keep the invoice anyway—it’s still part of your records.

Documentation: what to keep to support your claim

Good recordkeeping is your best friend. If you ever need to justify the deduction, you want to show that the expense is real, paid, and business-related. Keep:

The invoice or receipt showing the supplier name, date, amount, and what was purchased.

Proof of payment (bank statement line, card statement, payment confirmation).

The subscription terms or plan description, especially if the invoice is vague.

Evidence of business use, such as campaign reports, automation logs, or screenshots showing the account is used for business communications.

Notes explaining any apportionment method if there is mixed use.

If the tool is billed to your personal name or personal card, that doesn’t automatically disqualify it, but it may invite questions. If possible, set subscriptions up under the business name and pay from a business account. If you can’t (for example, because you’re newly established), keep clearer documentation of why the expense is business-related and how it ties to revenue activity.

Personal vs business use: how to stay on the right side of the line

Many business owners blur lines unintentionally because modern tools are convenient and multi-purpose. If you want to keep things simple and defensible:

Use a business email address to register the subscription.

Maintain separate lists for business and personal communications if you must use the same tool.

Avoid using business-paid subscriptions for personal projects, or keep that use small and well documented with apportionment.

Keep a clear marketing plan or campaign schedule so the business purpose is obvious.

If you operate multiple businesses, consider separate accounts or clear tagging within the platform to show which campaigns belong to which entity.

The goal is not perfection; it’s reasonableness. Tax authorities usually care about whether your claim reflects genuine business use and whether you can explain it clearly.

Different business structures: does it change the answer?

The general principle—deduct business expenses—applies across many structures, but how you claim it and how strictly you must separate personal use can vary.

Sole traders / self-employed individuals

If you are self-employed, you can often claim business expenses that are wholly for business purposes. If there’s mixed use, you typically claim only the business portion. The boundary between personal and business is important because the business and the individual are closely linked in practical life, even if the business is recognized separately for tax.

Partnerships

Partnerships typically claim business expenses at the partnership level, then profits are allocated to partners. If one partner pays personally for a partnership tool, you may treat it as a reimbursable partnership expense or partner contribution, depending on how your partnership accounts are maintained. Keep partnership agreements and records aligned.

Limited companies / corporations

In a company structure, the company is a separate legal entity. Ideally, the company pays for business software directly and keeps invoices in the company’s name. If a director pays personally, it can be reimbursed or recorded as an expense claim. Mixed personal use can raise additional issues because personal benefit provided by the company may have tax consequences depending on jurisdiction. The safest approach is strict separation: company-paid tools should be used for company business.

If you operate through a company, be especially careful about using company-paid marketing tools for personal projects, even if it feels minor. If you need a personal plan, pay for it personally.

What if the tool is used for content marketing, not direct selling?

Email marketing isn’t always about immediate sales. You might send educational content, a weekly digest, or community updates that build trust over time. That’s still marketing, and marketing is a legitimate business purpose even when it doesn’t produce instant revenue.

Similarly, if you use email to support customer retention—helping customers get more value from what they bought—those communications support the business and can reduce churn. That’s clearly business-related.

Where the line can blur is when the content is more like a personal newsletter or influencer-style content that isn’t clearly tied to a business. If you monetize through sponsorships, affiliate links, or product sales, it can still be a business. If it’s purely a hobby with no real commercial intent, the expense may not be deductible. Keeping a clear monetization strategy and business activity record helps establish the business purpose.

What about building and buying email lists?

Email list practices vary widely, and some may carry legal and compliance risks. From a tax perspective, costs associated with building a list (lead magnets, landing page tools, advertising, list cleaning) are often marketing expenses. But buying lists is a more sensitive area: aside from potential regulatory and deliverability concerns, it can be hard to show that the list is used in a compliant business way, and it can create reputational issues.

Even if an expense could be deductible in theory, it’s not worth it if the underlying practice breaches privacy rules or platform terms. A better path is usually to invest in opt-in list building methods. Those costs are easier to justify as legitimate marketing spend and tend to be more sustainable for the business.

How to claim the expense in practice

Most of the time, claiming the expense is simply a matter of recording it correctly in your accounting records and including it in your business expenses on your tax return. Practical steps include:

1) Save the invoice each billing period (or download a monthly invoice archive if available).

2) Record the expense in your bookkeeping software under “Marketing,” “Advertising,” or “Software subscriptions.”

3) If there’s mixed use, decide your apportionment method and record only the business percentage.

4) If you reclaim VAT/GST, record the net and tax portions correctly and ensure the invoice meets requirements.

5) Keep a simple folder (digital is fine) with invoices, payment proofs, and short notes about business usage.

If you’re audited or asked questions, your goal is to show a clean story: you bought the tool for business marketing, you used it for business communications, and your records support the amount you claimed.

Red flags and avoidable mistakes

Most issues arise not because the expense is inherently invalid, but because the records are unclear or the personal element is too strong. Common mistakes include:

Claiming 100% of a subscription that is clearly used for personal newsletters or hobby projects without any apportionment.

Not keeping invoices, especially for recurring SaaS tools where people assume bank statements are enough.

Using vague descriptions: some invoices just say “subscription.” If the tool name doesn’t clearly indicate its purpose, keep the plan description or a screenshot of the billing page.

Claiming expenses when there is no real business activity (for example, no trading, no attempt to earn income, and no plan).

Double-claiming: paying through a platform that aggregates multiple tools and also claiming individual tool invoices separately.

Paying personally and also claiming it as a company expense without proper recording or reimbursement entries.

These are easy to avoid with consistent bookkeeping and a quick monthly habit of saving documentation.

Special considerations for home-based and online businesses

Home-based businesses often have more mixed-use expenses (internet, phones, computers). Email marketing tools are usually cleaner because they are specific-purpose software. However, if your marketing tool is tied to personal devices or personal email accounts, you may inadvertently mix records.

To make things simpler:

Use a dedicated business email address for marketing accounts and billing.

Use a business card or business bank account for recurring subscriptions where possible.

Keep marketing assets and templates in business storage folders, not personal ones.

Maintaining separation reduces both administrative hassle and the risk of confusion later.

Can you claim related costs: templates, copywriting, and design?

Yes, often. Email marketing isn’t just the sending platform. The production of campaigns may include:

Template purchases (premium template marketplaces, branded template packs).

Copywriting services (freelancers, agencies, consultants).

Design and branding work (email headers, image creation, typography assets).

Automation setup and consulting (funnel mapping, segmentation strategy, integration work).

Testing tools (deliverability testing, link checking, accessibility review tools).

If these are incurred for business marketing, they generally fall under marketing or professional services expenses. As with the software, mixed-use rules apply if you use assets personally or across different activities. But most of the time, if you’re buying a template for your business newsletter, it’s a straightforward business cost.

What if you receive free credits, discounts, or refunds?

Promotions are common in SaaS. You might receive credits, referral bonuses, or partial refunds. In bookkeeping terms, you typically only deduct what you actually paid (net of refunds) for that period. If you receive a credit that reduces a future invoice, record the net amount you pay on the next invoice, and keep the documentation showing the credit was applied.

If you receive a refund after you’ve already recorded an expense, adjust the expense accordingly. Clean records matter more than the exact method, as long as the final claimed amount reflects what was truly spent on the business.

Practical checklist: are you likely safe to claim it?

Use this checklist as a quick self-assessment:

You use the email marketing tool to promote your products/services or communicate with customers.

The subscription is primarily (or entirely) used for business purposes.

You have invoices/receipts and proof of payment.

If there’s mixed use, you can justify a reasonable business percentage and have a method you apply consistently.

The cost is reasonable for the type and scale of your business (for example, paying for a high-tier enterprise plan should make sense based on your list size and needs).

You record it consistently in your accounts under an appropriate category.

If you can tick these off, you’re usually in good shape.

When it’s worth getting tailored advice

Most businesses can handle email marketing tool expenses as routine deductions. But consider professional advice if:

You operate through a company and the subscription has any personal element.

You’re claiming large setup fees for complex systems or custom development.

You’re dealing with cross-border VAT/GST complexities or uncertain invoicing requirements.

You have a unique situation (multiple entities, shared accounts, or unusual marketing arrangements).

A short conversation with an accountant can save time and reduce risk, especially if the amounts are material.

Bottom line

In most cases, you can claim expenses for business-related email marketing tools, because they are a legitimate cost of marketing and running a business. The key is that the expense must be genuinely connected to business activity and supported by good records. If the tool is used exclusively for business, the claim is usually straightforward. If there’s mixed use, apportion the cost reasonably and keep notes explaining your method.

Email marketing tools are often among the clearest, easiest-to-justify software expenses a business can have—especially when you treat them like any other business system: billed to the business, used for the business, and backed by tidy documentation.

Simple next steps

If you want to put this into action today, here are practical steps you can take immediately:

Download or email yourself the latest invoices for your email marketing platform.

Ensure your subscription account details reflect your business name and address where possible.

Decide on a bookkeeping category (marketing/advertising or software subscriptions) and stick to it.

If you have any personal use, choose an apportionment method and write a short note in your records explaining it.

Keep a monthly habit: save the invoice, reconcile the payment, and move on.

With those basics covered, claiming your business-related email marketing tool expenses becomes a routine, low-stress part of running your business finances.