Every pound you spend promoting your freelance business can be claimed as an allowable expense. But there's one major trap that catches people out every year: client entertaining. Here's the complete picture.
Claimable Marketing Expenses
- Online advertising: Google Ads, Facebook/Instagram ads, LinkedIn promoted posts — all fully claimable.
- Business cards and print materials: Design and printing costs for business cards, flyers, brochures.
- Website costs: Design, development, hosting, domain, content creation, SEO tools — everything related to your business website.
- Portfolio platforms: Behance Pro, Dribbble Pro, Squarespace, or any platform fee for showcasing your work.
- Email marketing tools: Mailchimp, ConvertKit, or similar subscription costs.
- Networking events: Ticket prices for business networking events, conferences, and trade shows.
- Trade show costs: Stand rental, display materials, banner printing.
- Social media management tools: Buffer, Hootsuite, or similar if used for business promotion.
The Client Entertaining Trap
This is the biggest misconception in self-employed expenses. Taking a client to lunch, buying them a drink, or treating them to an event is NOT an allowable expense for sole traders.
HMRC's rules on this are very strict. It doesn't matter that it's clearly for business purposes — the tax rules specifically exclude client entertaining.
However, there are some narrow exceptions:
- Staff entertaining: If you have employees (not subcontractors), you can spend up to £150 per head per year on staff events like a Christmas party.
- Small branded gifts: Items under £50 per person per year that carry a conspicuous advert for your business (e.g. branded mugs, pens) may be allowable.
Example: Marketing Costs for a Freelance Photographer
| Expense | Amount |
|---|---|
| Instagram/Facebook ads | £600 |
| Website hosting and domain | £150 |
| Squarespace portfolio | £144 |
| Business cards (2 batches) | £60 |
| Networking event tickets | £200 |
| Mailchimp subscription | £156 |
| Total claimable marketing expenses | £1,310 |
At the 20% basic rate, this saves £262 in income tax.