You film videos, people watch them, advertisers pay you, and then—here’s the fun bit—you owe tax on the money. But there’s a twist! You also spent money to make the money. You bought a camera, you pay for internet, you turned your spare bedroom into a studio.
The government, in its infinite wisdom, has decided that you shouldn’t pay tax on money you spent to earn money. This is called a “tax deduction,” and it’s basically the government saying “we’ll take a cut of your profits, but we’re not monsters—we won’t tax you on the camera you needed to make the profits in the first place.”
The problem is that nobody tells you this. Well, they do—it’s in the tax code—but the tax code is written in the bureaucratic equivalent of a whisper, and most people making videos about their morning routines or gaming setups don’t spend their evenings reading HMRC guidance notes. So you end up paying more tax than you need to, which is legal but silly, or you claim things you shouldn’t, which is illegal and also silly.
The correct move is to understand what you can actually claim. Cameras? Yes. Software subscriptions? Yes. Your gym membership because you said “what’s up guys” on camera at the gym once? No. Let’s talk about the yes pile, which is surprisingly large.
Your Business Structure Affects What You Can Claim
Before we get into the specific deductions, it’s worth understanding how your business structure affects what you can claim.
Sole Trader: You’re self-employed, report your income through Self Assessment, and can claim expenses that are wholly and exclusively for business. The good news is that it’s straightforward. The slightly less good news is that you’re personally liable for everything.
Limited Company: Your business is a separate legal entity. You can claim similar expenses, but there are some additional allowances (like salaries and employer’s National Insurance) and a few more restrictions (like client entertainment). Limited companies tend to make sense once you’re earning a decent income, but they do come with more admin.
Not sure which structure suits you best? It’s worth having a chat with an accountant who understands the creator economy—more on that later.
Just starting out? You might get a free pass. If you’re just starting out and earn less than £1,000 per year from your content creation, you can use the trading allowance and don’t need to report this income or register for Self Assessment. Once you cross that threshold, though, you’ll need to register.
Equipment & Technology Write-Offs
1. Cameras, Microphones & Filming Equipment
This is the big one. If you’ve invested in a decent camera, microphone, lighting rig, tripods, or even that fancy gimbal stabiliser, you can claim it—as long as it’s genuinely used for your business.
The key phrase here is “used for business.” If you’re also using your camera for personal holiday snaps, you’ll need to apportion the cost fairly. But if it’s a dedicated bit of kit that lives in your studio space and only comes out for filming, you’re golden.
2. Computers, Laptops & Tablets
Whether you’re editing videos on a high-spec gaming laptop or managing your social media from an iPad, these are legitimate business expenses. Again, the “wholly and exclusively” rule applies. If you’re using your laptop for Netflix binges as well as Final Cut Pro sessions, technically you should only claim the business portion—though in practice, many sole traders claim the full cost if it’s predominantly for work.
3. Software & Subscriptions
Adobe Creative Cloud, Canva Pro, Epidemic Sound, stock photo subscriptions, project management tools—these recurring costs add up quickly, but they’re all claimable. Make sure you’re only claiming the business portion. If you’ve got a Spotify subscription that you occasionally use for background music in vlogs, that’s a stretch. But if you’re paying for Artlist specifically for your videos? Absolutely.
4. Capital Allowances & Depreciation
For larger purchases—think a £3,000 camera setup or a new MacBook Pro—you might be better off claiming capital allowances rather than expensing the full amount in one year. The Annual Investment Allowance (AIA) currently lets you deduct the full value of qualifying equipment (up to £1 million) in the year you buy it, which is handy for significant investments.
If you’re not sure whether to claim something as an immediate expense or as a capital allowance, this is one to discuss with your accountant.
Workspace & Home Office Deductions
5. Working From Home Expenses
If you’re filming from your spare bedroom or editing in the corner of your living room, you can claim a portion of your household costs. This includes rent (or mortgage interest if you’re a sole trader), electricity, heating, water, and even council tax.
The trick is working out a “reasonable apportionment.” HMRC expects you to calculate this based on the space you use and the time you use it. For example, if you use one room in a four-bedroom house exclusively for business, and you work five days a week, you might claim something like 15-20% of your household costs. Keep it sensible and be prepared to justify your calculation if asked.
Important note for limited companies: If you’re running a limited company and working from home, you’ll need a formal home office agreement in place. You can’t just claim a chunk of your mortgage through the company without proper documentation.
6. Internet & Phone Bills
Your internet connection is probably essential for uploading videos, engaging with your audience, and running your business. You can claim the business portion of your monthly bill. If you’re on calls with sponsors or using your phone primarily for work, the same applies to your mobile contract.
Again, be reasonable. If you’re streaming Netflix and gaming online in the evenings, you can’t claim 100% of your broadband. But a 50-70% business use claim would be fair for most full-time creators.
7. Office Premises Costs Limited Companies Only
If your limited company rents a dedicated studio or office space, you can claim the full cost of rent, business rates, utilities, and any other costs associated with the premises. This is one area where limited companies have a clear advantage—renting a space through your company is straightforward and fully deductible.
Travel & Transport
8. Business Travel Expenses
Heading to a filming location? Meeting a brand partner for lunch? Travelling to a conference or industry event? These costs are all claimable. This includes train tickets, bus fares, fuel for business trips, parking charges, and even congestion charges if you’re driving into Central London for work.
The key thing to remember is that your regular commute—from home to a permanent place of work—is not claimable. But if you’re travelling from home to a temporary work location (like a brand event, a filming location, or a meet-up with collaborators), that’s fair game.
Keep records of where you went, why, and what you spent. A quick note in your phone or a spreadsheet will do the trick.
9. Business Vehicle Costs Limited Companies Only
If your limited company owns or leases a vehicle that’s used for business, you can claim the running costs—fuel, insurance, maintenance, and depreciation. Just be aware that if the vehicle is also used for personal trips, there may be a “benefit in kind” tax charge to consider.
For sole traders, it’s usually simpler to claim mileage at HMRC’s approved rates (currently 45p per mile for the first 10,000 miles, then 25p per mile after that) rather than claiming actual vehicle costs.
Marketing & Growing Your Business
10. Website & Online Presence
Your website is your digital shopfront, so all the costs associated with it are claimable. This includes domain registration, web hosting, website design and development, and any ongoing maintenance or updates.
If you’ve hired a designer to create your branding or a developer to build a custom site, those fees are deductible too. Even that Squarespace or WordPress subscription counts.
11. Advertising & Promotion
Running Facebook or Instagram ads to promote your channel? Paying for YouTube ads? Printing business cards or flyers for an event? All claimable.
This category also includes things like sponsored posts you might pay for (if you’re trying to grow your own audience), promotional merchandise, and any other costs directly related to getting your name out there.
Professional Development & Services
12. Training & Education
Courses, workshops, and training that improve your content creation or business skills are allowable expenses. This could be anything from a video editing masterclass to a social media marketing course or even a workshop on negotiating brand deals.
What doesn’t count? A degree in an unrelated subject or a course that’s purely for personal interest. The training needs to have a clear connection to improving your business.
13. Professional Fees
Accountants, bookkeepers, solicitors, business coaches, and consultants—if you’re paying for professional advice or services to help run your business, it’s deductible.
This also includes business insurance. If you’ve got public liability insurance for filming on location, or professional indemnity insurance, those premiums are claimable.
Banking & Administrative Costs
14. Bank Charges & Payment Processing Fees
If you’ve got a dedicated business bank account (which you absolutely should, by the way), the monthly account fees are deductible. The same goes for any payment processing fees from PayPal, Stripe, or other platforms you use to receive income from sponsorships, ad revenue, or merchandise sales.
These small costs add up over a year, so don’t overlook them.
Limited Company Specific Deductions
15. Salaries & Employer Contributions Limited Companies Only
If you’re running a limited company, you can pay yourself a salary and claim it as a business expense. You can also employ other people—whether that’s a video editor, a social media manager, or an assistant—and claim their salaries and your employer’s National Insurance contributions.
This is one of the big advantages of operating as a limited company. By paying yourself a modest salary and taking the rest as dividends, you can often reduce your overall tax bill (though dividend tax rules have tightened in recent years, so it’s worth getting proper advice).
16. Creative Industry Tax Reliefs Limited Companies Only
If you’re producing high-end content and your company qualifies, you might be able to access creative industry tax reliefs. These were originally designed for film and TV production companies, but depending on the nature of your work, you might be eligible.
This is a specialist area, so if you think it might apply to you, definitely speak to an accountant with experience in the creative sector.
What You CAN’T Claim
Let’s clear up a few common misconceptions. HMRC isn’t going to let you claim everything under the sun, so here are some things that aren’t deductible:
- Client entertainment (especially for limited companies): Wining and dining a brand rep? Not claimable, unfortunately.
- Personal expenses: That gym membership, your weekly food shop, or your Netflix subscription? Not deductible, unless you can genuinely prove it’s for business (and good luck with that).
- Clothing: Unless it’s specific costume or character clothing that you’d never wear outside of filming, your wardrobe isn’t claimable. Yes, even if you only wear those trainers in videos.
- Dual-purpose items without apportionment: If something is used for both business and personal reasons, you need to work out a fair split. You can’t just claim 100% and hope for the best.
HMRC takes a dim view of people trying to claim personal expenses as business costs. Play it straight, be honest, and you’ll be fine.
Record-Keeping Best Practices
Here’s the thing: you can claim all the deductions in the world, but if you can’t prove you spent the money, HMRC won’t care. Good record-keeping isn’t glamorous, but it’s essential.
What you need to keep:
- Receipts and invoices for everything you claim
- Bank statements showing payments
- Mileage logs if you’re claiming travel
- Records of what each expense was for (a quick note will do)
How long to keep records:
- Sole traders: 5 years after the 31 January submission deadline for the relevant tax year
- Limited companies: 6 years from the end of the financial year
Tools that can help: There are loads of apps and software designed to make this easier. Xero, QuickBooks, FreeAgent, and even something as simple as a well-organised spreadsheet can save you hours of stress when it’s time to file your tax return.
Take photos of receipts as you go, categorise expenses weekly (not yearly—trust me on this), and keep everything in one place. Future you will be very grateful.
Or Just Get Someone Else to Do It
This is the bit where we mention Monx. We’re accountants who actually understand creators.
With a human-centric approach, fair pricing, and real experts (no bots), Monx makes managing your business finances straightforward and stress-free. Our services include:
- Self Assessment and tax planning
- Limited company accounting and corporation tax returns
- VAT returns and advisory
- Company registration and secretarial services
- Outsourced payroll and HR services
Stop stressing about spreadsheets and let Monx handle your accounts so you can focus on what you do best: creating brilliant content. Book a free consultation using the form below.
