Can I claim?
If you decide to purchase a web domain in order to market your business more effectively, this cost is eligible for tax relief under the category of advertising costs.
The only exception to this would be if part of your everyday business expenditure was purchasing web domains on behalf of clients. This would not be considered an expense but a fundamental part of the business, the cost of which would be covered by the price paid by the client.
The "Website" category can be found under the "Advertising" expenses group.
Getting customers and ongoing business is the biggest challenge for many self-employed people and although word of mouth is a great way to find new customers, most businesses need to advertise as well.
The local papers and directories such as the Yellow Pages are a big help but most customers look online for recommendations and information about services they are considering using.
Therefore building a professional-looking website can be a critical strategy in building a successful client-base and reaching new audiences.
The cost of purchasing a web domain can be considered as a direct business expense and used for tax relief purposes.
HMRC allows 100% of the expenditure for marketing purposes to be used for tax relief; this includes the purchasing of web domains for business use.
Depending on the size and nature of your business, you may either opt to create the website yourself or pay for a web designer to create a really slick-looking product. If you opt for the latter, you can also claim tax relief on the price you pay for their services. This principle applies to the vast majority of specialist services you use solely and exclusively for the purposes of your business.
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