Start-Up Digital Agencies: What Expenses Can You Claim

Tax-Saving Guide for Start-Up Digital Agencies

Launching your own digital agency is exciting — whether you’re building websites, running ad campaigns, or managing content for clients. But as your business grows, so will your tax bill. The good news? There are plenty of allowable business expenses you can claim to reduce your corporation tax bill.

Understanding what you can and can’t claim ensures you keep more of your profits to reinvest in your agency’s growth.

🖥 1. Office & Equipment Costs

Even if you’re working from home or a co-working space, you can claim back costs related to running your workspace. This includes:

• Computers, laptops, tablets, monitors, and accessories
• Printers, keyboards, and ergonomic office chairs
• Co-working memberships and hot-desking fees
• A proportion of home office expenses (if you work from home) such as heating, lighting and broadband

💡 Top tip: Keep receipts for purchases and clearly separate personal and business.

🌐 2. Software & Subscriptions

Digital agencies rely heavily on online tools and platforms — and most of these are fully deductible:

• Adobe Creative Cloud, Canva Pro, Figma
• Project management tools (Asana, Trello, Monday)
• Accounting software (Xero, FreeAgent, QuickBooks)
• CRM systems and automation tools
• Domain names, hosting fees, and website subscriptions

📝 These costs can be expensed in full, often in the year they’re incurred.

🚀 3. Marketing & Advertising

Promoting your agency is essential for growth — and these costs are deductible too:

• Paid ads (Google, Meta, LinkedIn)
• SEO and content marketing services
• Brand design, photography, and video production
• Promotional events or launch parties
• Business cards, flyers, or branded merchandise

🧾 4. Professional Fees

Professional services you use to run and protect your agency can also be claimed:

• Accountant and bookkeeper fees
• Legal fees related to contracts or company formation
• Business advice or consultancy services
• HMRC filing fees (e.g. Companies House submissions)

⚠️ Legal fees for buying property or fines/penalties are not allowable.

🚉 5. Travel & Training

When you’re meeting clients or upskilling your team, keep those receipts:

• Train, bus, taxi, and parking costs for business trips
• Mileage allowance if you use a personal car (45p per mile up to 10,000 miles)
• Hotel stays and reasonable meal costs for overnight business trips
• Industry conferences, online courses, and workshops relevant to your agency

🎓 Training must relate to your existing business activities to qualify as deductible

🧍 6. Salaries, Directors’ Pay & Pensions

Paying yourself and your team correctly is one of the biggest tax-planning opportunities:

• Staff salaries and wages
• Employer’s National Insurance contributions
• Employer pension contributions (these are deductible for the company)
• Directors’ salaries and pension contributions

💡 A smart mix of salary and dividends can be highly tax-efficient

🛠 7. Other Useful Deductions

Don’t forget these commonly overlooked expenses:

• Bank charges and business loan interest
• Business insurance (professional indemnity, cyber, public liability)
• Training materials and books
• Client entertainment
• Subcontractor or freelancer fees

📌 The Bottom Line

Every pound you claim as an allowable business expense reduces your taxable profit, meaning you pay less Corporation Tax. For start-up digital agencies, this can free up valuable cash to reinvest into growth, hire talent, or build new service offerings.

The key is good record-keeping and getting the right advice early. Claiming everything you’re entitled to — correctly — can make a significant difference to your bottom line.

🧮 Need Expert Help?

Navigating what’s allowable can get complicated, especially as your agency grows. Our specialist accountants work with digital agencies and creative businesses every day — helping founders claim the right expenses and reduce their tax bills legally and efficiently.

Gain peace of mind.  Free up more time.  Pay less tax.

We’re ready when you are.