Can I claim expenses for business-related SEO or marketing services?

Can I claim expenses for business-related SEO or marketing services?

Most businesses spend money to win attention: search engine optimisation (SEO), pay-per-click advertising (PPC), social media management, email marketing platforms, creative agencies, branding consultants, conversion-rate optimisation (CRO), analytics tools, and a long list of related services. A common question is whether those costs can be claimed as business expenses for tax purposes. In many cases, the answer is “yes” — but the details matter. The way you structure your work, the way you’re billed, the nature of the service, and how the spending relates to your trade can all affect whether it’s deductible, when you can claim it, and how much you can claim.

This article explains the typical principles that tax authorities use when judging whether SEO and marketing costs are allowable business expenses. It also highlights common grey areas (like brand redesigns and “once-and-for-all” projects), provides practical examples, and suggests simple record-keeping habits to reduce disputes. Because rules vary by country and by business structure, treat this as general guidance and check local rules or ask an accountant if the sums are large or the situation is unusual.

What “claiming expenses” really means

When people say they want to “claim” SEO or marketing costs, they usually mean one of three things:

First, they want to deduct the cost from business income when calculating taxable profit. If you spend £2,000 on SEO and your business makes £50,000 in revenue, you generally pay tax on profit after allowable expenses rather than on the full £50,000.

Second, they want to know whether the cost is treated as a normal operating expense (often fully deductible in the period) or as a longer-term asset cost (sometimes claimed over time, or treated differently depending on the tax regime).

Third, they want to know whether VAT/GST/sales tax on those services is recoverable as input tax, which depends on the business’s registration status and local rules.

SEO and marketing services can touch all three. The good news is that most routine marketing is considered a normal cost of doing business. The complications arise when marketing spending starts to look like it’s creating a lasting asset, is partly personal, is aimed at a future business rather than a current one, or is poorly documented.

The core test: is it “wholly and exclusively” for business?

Across many tax systems, the central idea is that an expense must be incurred for the purposes of the business. The language differs, but the spirit is the same: the cost should be tied to generating business income, maintaining the business, or running the business efficiently.

SEO and marketing costs usually meet this test because they are intended to attract customers, increase sales, or strengthen commercial visibility. However, you need to watch for “dual purpose” spending — where the expense also provides a personal benefit. If an expense has mixed business and personal purposes, you may need to apportion it (claim only the business portion) or, in some systems, you may be denied the deduction entirely if the personal element is significant and inseparable.

Examples of dual-purpose problems include paying an influencer to promote a founder’s personal profile that is only loosely connected to the business, or running ads that promote both a business and a personal hobby project under the same budget. Another common pitfall is paying for a “lifestyle” photoshoot that is presented as brand content but is primarily personal imagery with minimal commercial use.

Routine SEO and marketing services are usually deductible

For most trading businesses, routine marketing spend is treated as an ordinary operating cost. Typical examples that are usually deductible include:

Ongoing SEO retainers (technical fixes, content planning, link-building outreach, audits, reporting).

PPC management fees paid to an agency, freelancer, or platform partner.

Paid media spend itself (search ads, social ads, display ads) where it is clearly for the business.

Social media management and content scheduling tools.

Email marketing platforms and related software subscriptions.

Copywriting, design services, and content production (articles, landing pages, product photography) used for business promotion.

Analytics and reporting tools, heatmapping software, and A/B testing platforms that support marketing and sales optimisation.

PR services, outreach, press release drafting, and media monitoring.

Affiliate marketing fees and network costs, provided they relate to business sales.

In these cases, you’re generally paying for a service consumed in the current period to generate or support revenue. That looks and feels like a normal business expense.

Capital vs revenue: when marketing looks like a lasting asset

The biggest “it depends” issue is whether your spend is treated as a normal running cost (often called a revenue expense) or as capital expenditure. Capital expenditure generally means spending that creates or significantly improves an asset with enduring benefit. Tax treatment varies widely, but capital costs are commonly claimed differently (for example, via depreciation/amortisation, capital allowances, or sometimes not deductible at all depending on the asset and local rules).

Marketing is tricky because it can create lasting value, such as a better-known brand, a more effective website, or a library of content that ranks for years. Still, many tax systems treat advertising and marketing as deductible even if it has some enduring effect, because marketing is a recurring activity rather than the purchase of a durable asset like machinery.

However, certain projects raise more capital-style questions:

A full website build from scratch with significant development work (especially if it results in a new platform or proprietary functionality).

A major rebrand project that creates new brand assets, identity systems, and long-term intellectual property.

Acquiring a domain name for a large sum or purchasing an existing website/business.

Developing bespoke software for marketing automation or CRM integration that becomes an asset used over multiple years.

Buying a customer list (where permitted by law) or acquiring marketing-related intangible assets as part of a business acquisition.

If your “marketing” invoice includes both ongoing promotional services and the creation of a long-term asset (like a new website), you may need to split the cost. Clear invoicing helps. If your supplier can itemise the work into distinct deliverables, it’s easier to apply the right treatment. If everything is bundled as “marketing services,” you may end up with unnecessary complexity or risk.

SEO-specific nuance: content and technical work

SEO isn’t just “ads.” It includes technical improvements (site speed, indexing, structured data, redirects), content creation (blog posts, landing pages, product category copy), and off-site efforts (digital PR and link acquisition). The more SEO work resembles a repair or optimisation of an existing business asset, the more likely it is treated as a normal expense. The more it resembles building a new asset from the ground up, the more it starts to resemble capital expenditure.

For example, paying an SEO consultant to fix crawl errors, optimise titles and metadata, and advise on internal linking is typically a straightforward deductible expense. Paying a development team to build an entirely new ecommerce platform as part of an SEO initiative is more complicated, because you’re creating a new technical asset rather than simply promoting the business.

Content is also an interesting case. A library of articles can provide benefit for years. Yet content production is generally treated as an ordinary marketing cost because content is created to attract and inform customers, is subject to ongoing updates, and is part of normal trading activity. Where it becomes tricky is if you are paying to acquire rights to an existing content library or buying an established site’s content as part of a purchase, which can look more like acquiring an intangible asset.

One-off campaigns vs ongoing retainers

From a practical point of view, both one-off and ongoing marketing costs can be deductible. A one-off campaign (for example, a product launch campaign managed by an agency over six weeks) is still a business promotion expense. An ongoing retainer is also a business promotion expense. The difference tends to show up in bookkeeping and timing.

If you’re using accrual accounting, you generally match expenses to the period they relate to. If you pay an annual marketing platform subscription upfront, you may allocate it across the year in your accounts. If you’re using cash accounting (where allowed), you may claim when you pay. Rules differ, but your accounting method often influences the timing of the deduction.

A common issue is prepaid marketing. Suppose you pay 12 months of SEO fees upfront in March. Under some approaches, you claim the full amount when paid; under others, you recognise it across the months it relates to. The concept to keep in mind is consistency: choose an approach consistent with your accounting basis and apply it the same way across similar costs.

Marketing before you start trading: can you claim it?

Startups often spend on branding, websites, SEO, and ads before they make their first sale. Whether you can claim these pre-trade costs depends on local rules. Many tax systems allow certain pre-trading expenses if they are incurred for the purpose of the future trade and would have been allowable had the business already started. Sometimes those costs can be treated as incurred on the first day of trading.

In practice, this means you should keep excellent records of early marketing spending, and clearly document that it was part of launching the business. Examples include paying a designer for a logo, paying for a website build, conducting keyword research, or running small test ad campaigns before launch. Even where allowable, there may be limits or special rules, so it’s wise to check if you’re spending significant amounts before the business is operational.

Personal brand vs business brand

In modern marketing, especially for consultants, coaches, creators, and founders, the “brand” can be a person. This is where expense claims can become delicate. If you pay for SEO or PR that promotes you personally, but that personal visibility is the primary engine of business leads, the cost may still be a business expense. But you should expect more scrutiny when the benefit is personal reputation rather than a distinct business brand.

To strengthen the business connection, keep evidence that the marketing activity drives business outcomes: leads, enquiries, conversions, speaking gigs that lead to contracts, newsletter sign-ups tied to sales funnels, or inbound requests for services. Also, where possible, structure your marketing assets and messaging so they clearly relate to the trade (services offered, booking links, case studies, product pages) rather than simply building personal fame.

If an expense is mostly about personal status, lifestyle, or non-commercial recognition, claiming it becomes risky. The more you can show direct business purpose and measurable commercial intent, the safer the claim tends to be.

What about gifts, hospitality, and “marketing” that looks like entertainment?

Some businesses label expenses as “marketing” when they are actually client entertainment, influencer gifting, or hospitality. Tax treatment for entertainment and gifts can be more restrictive than for advertising services, depending on your jurisdiction.

For example, taking a client to dinner might feel like marketing, but it may fall under entertainment rules. Sending high-value gifts to prospects might also have special limits. Influencer marketing can blur lines too: if you send free products, you may need to account for the cost of goods, and there may be rules around samples or promotional giveaways.

The takeaway is simple: don’t assume “marketing” is automatically deductible if the substance of the expense is entertainment or a personal benefit. Categorise spending accurately and keep supporting documentation.

Common SEO and marketing expenses you can often claim

Here is a practical list of expenses that many businesses can claim, assuming they are genuinely business-related:

SEO audits, keyword research, competitor analysis, and strategy consulting.

On-page optimisation work, technical SEO fixes, and structured data implementation fees.

Content creation fees: copywriters, editors, subject matter experts, photographers, videographers.

Design costs for landing pages, ad creatives, brochures, pitch decks, and brand collateral.

Digital PR and outreach services, including press release writing and media pitching.

Marketing software: CRM systems, email platforms, analytics subscriptions, SEO tools, A/B testing tools.

Website hosting and maintenance where connected to marketing operations (and more generally to running the business).

Conversion optimisation services: user research, usability testing, funnel audits.

Agency retainers or freelancer fees for campaign management.

Market research costs used to position products and improve marketing effectiveness.

Remember: a “claimable” cost is not defined by the label; it’s defined by the underlying business purpose and the rules in your location.

Costs that can be claimable but often need extra care

Some marketing-related costs are frequently claimable, but they raise questions more often and benefit from careful documentation:

Website development: If it’s a small refresh, routine maintenance, or minor improvements, it can look like a normal expense. If it’s a major new build, it might be treated as creating an asset. Itemise development versus ongoing marketing work.

Branding and rebranding: A light update (new templates, refreshed visuals) may look like routine marketing. A full identity overhaul could be argued as creating enduring brand assets. Again, itemisation and context matter.

Photography and video production: Product and service content is usually business-related. Lifestyle content that doubles as personal use is riskier. Ensure the deliverables are clearly for commercial channels.

Courses and training: SEO training for staff can be deductible if it maintains or improves existing skills used in the business. Training that qualifies you for a new trade can be treated differently. Be careful with “start a marketing agency” courses if your existing business is unrelated.

Influencer marketing: Typically deductible as advertising, but keep contracts, deliverables, and evidence of publication. If compensation includes gifts or travel, other rules may apply.

Proving the business purpose: what records should you keep?

Good records are what turn a “probably fine” expense into a defensible claim. For SEO and marketing, aim to keep:

Invoices that clearly describe the service (for example: “SEO retainer for June: technical optimisation, content briefing, reporting” rather than “consulting”).

Contracts or statements of work showing deliverables, timelines, and business objectives.

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

Campaign reports, ad platform summaries, or monthly SEO reports that show activity took place.

Links or screenshots of published ads, landing pages, content pieces, or PR coverage.

Internal notes tying the spending to a product launch, seasonal push, or sales target.

When invoices are vague, ask suppliers to add detail. A single line like “marketing services” isn’t necessarily fatal, but it’s an avoidable weakness.

How to handle mixed invoices: split marketing, development, and software

Many agencies bundle work: strategy, content, web changes, ad management, and tools. From a tax and bookkeeping standpoint, it can be useful to split costs into categories such as:

Services (consulting, management, creative work).

Media spend (the actual ad spend, if the agency pays it on your behalf).

Software (subscriptions and licences).

Development (site builds or major feature work).

This can help you apply the appropriate treatment and make your accounts easier to understand. If you can’t split it perfectly, a reasonable allocation based on time spent, deliverables, or a supplier breakdown is often better than lumping everything into one bucket.

VAT/GST considerations for SEO and marketing services

Whether you can reclaim VAT/GST/sales tax on marketing services depends on whether your business is registered and whether the expense relates to taxable business activity. Cross-border services can add complexity, particularly if your SEO agency is in another country. Some jurisdictions have special “reverse charge” rules or place-of-supply rules for services.

Even within the same country, you generally need a valid tax invoice and the expense must be connected to business activity. If you’re partly exempt or making non-taxable supplies, input tax recovery may be restricted.

If VAT/GST is a material amount for you, it’s worth getting advice early, especially if you hire overseas freelancers or agencies, or if you run international campaigns with invoices coming from multiple entities.

Examples: how different businesses might claim SEO and marketing costs

Example 1: Local service business

A plumber pays a monthly fee to an agency to manage local SEO, update service pages, and run Google Ads. The agency invoice shows monthly services and the ad spend separately. This is typically a straightforward business promotion expense. The plumber keeps monthly reports and screenshots of campaigns.

Example 2: Ecommerce store replatforming

An ecommerce store spends £25,000 rebuilding its website on a new platform, plus £2,000 per month on ongoing SEO. The ongoing SEO is usually treated as an operating expense. The replatforming could be treated as creating a significant asset depending on local rules, especially if it involves major development. Itemised invoices separating development from marketing consulting help clarify treatment.

Example 3: Consultant building personal authority

A management consultant hires a PR firm to secure podcast interviews and write thought leadership articles hosted on the consultant’s website. Leads come directly from these appearances, with tracking links and enquiry forms. This can be business-related, but it may draw extra scrutiny because it promotes an individual. Keeping evidence of commercial intent and outcomes strengthens the claim.

Example 4: Pre-launch startup

A startup pays for brand identity, a landing page, and SEO keyword research before the first sale. Depending on local rules, these costs may be treated as pre-trading expenses and claimed when trading begins. The startup keeps a timeline of launch steps, proposals, and invoices showing the spending was for the future trade.

Red flags that can create trouble

Certain patterns raise the chance of a challenge:

Vague invoices with no description of services.

Payments to friends or relatives with no contract, deliverables, or evidence of work performed.

Large one-off “marketing” payments that are actually for buying a website, buying followers, or other questionable practices.

Mixed personal and business spending with no attempt to apportion.

Claiming marketing that primarily benefits a hobby, personal brand unrelated to the trade, or a future business you never actually start.

Paying for prohibited or unethical services (for example, purchasing fake reviews or engaging in deceptive practices). Aside from legal and platform risks, these can be harder to defend as legitimate business expenses.

Best practices to make your claim robust

If you want to be confident claiming SEO and marketing expenses, adopt these habits:

1) Use business accounts

Pay from a business bank account or business card. It creates a clear audit trail and reduces accidental mixing of personal costs.

2) Get itemised invoices

Ask for breakdowns: strategy, content, ad management, development, software. The more clarity you have, the easier tax treatment becomes.

3) Keep deliverables and reports

Save monthly SEO reports, campaign summaries, creative assets, published links, and performance snapshots. You don’t need a novel — just enough to show real commercial activity.

4) Document the “why”

A short note like “Q2 lead generation push for new service line” or “Website refresh to improve conversions” can be surprisingly helpful years later.

5) Apportion when needed

If something is partly personal, claim only the business portion and keep a simple calculation or rationale.

6) Be consistent

Apply similar treatment to similar expenses. Inconsistent categorisation invites questions.

Frequently asked questions

Can I claim SEO tool subscriptions?

Often yes, if you use them for business marketing activities. Keep the subscription invoices and show that the tools support your business operations (keyword research, reporting, monitoring).

Can I claim ads spent on promoting a free lead magnet?

Usually yes, if the lead magnet is part of a funnel designed to generate business revenue. Keep the campaign details and evidence of how it links to your business (email sequences, sales pages, bookings).

Can I claim the cost of a logo and branding?

Often yes, but the treatment may differ if it’s a substantial one-off project that creates enduring brand assets. Many businesses still treat it as marketing, but it’s a common area to check with an accountant if the amount is large.

Can I claim marketing for an overseas market?

Usually yes, if it relates to your business trade. International campaigns may introduce tax-on-services complications (like VAT/GST place-of-supply rules), but the business purpose can still be valid.

Can I claim SEO if my site hasn’t made money yet?

Potentially, yes. Early-stage marketing can be part of building revenue. The key question is whether you’re genuinely operating (or imminently starting) a business, rather than pursuing a hobby. Keeping a clear plan, launch timeline, and evidence of commercial intent helps.

Putting it all together

In many cases, you can claim expenses for business-related SEO or marketing services because they are ordinary costs incurred to generate revenue and run your business. Ongoing retainers, campaign management, content creation, and marketing software are commonly deductible when they are genuinely for business purposes. The main areas to watch are mixed personal use, vague documentation, pre-trading spend, and large projects that might be treated as creating a lasting asset, such as major website builds or substantial rebrands.

If you keep clean records, pay through business channels, ask for itemised invoices, and document how the work supports your business activity, you will usually be in a strong position. Where the amounts are large, the project is complex, or the line between marketing and asset creation is blurry, a short conversation with an accountant can save you stress and help you choose the most defensible treatment from the start.

Ultimately, the simplest way to think about it is this: if the SEO or marketing expense is clearly connected to your trade and aimed at bringing in or retaining customers, it is often claimable. Your job is to make that connection obvious on paper.