Is a website tax deductible in the UK?

Key takeaways

In the UK, website costs are usually tax deductible, but how depends on the cost. Running costs such as hosting, domains, care and updates are normally allowable business expenses. Building a new website may be treated as a capital asset, often claimable through capital allowances such as the Annual Investment Allowance. Confirm treatment with your accountant.

• Running costs: normally allowable expenses.
• New build: may be capital, often relieved via allowances.
• Annual Investment Allowance: can cover qualifying spend.
• Always check with your accountant.

Is a website tax deductible?

A website is usually tax deductible in the UK, either as a business expense or through capital allowances. Day-to-day running costs such as hosting and updates are generally allowable expenses. A new build that brings lasting benefit may be treated as capital, with relief through allowances rather than as a direct expense.

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How are running costs treated?

Running costs such as hosting, domain renewals, care plans, software subscriptions and minor updates are generally treated as allowable business expenses, deducted from profits in the year they are paid. GOV.UK lists the kinds of costs self-employed people can claim, and the same principles apply to companies.

• Hosting and domain renewals.
• Care, updates and minor changes.
• Software and plugin subscriptions.

• Annual website renewals small businesses forget

How is a new website build treated?

A new website build may be treated as capital expenditure because it provides benefit over several years. Capital spending on qualifying items can often be relieved through capital allowances, including the Annual Investment Allowance. Some elements may be treated differently, so your accountant should advise on the split.

What records should you keep?

Keep invoices that separate build, content, hosting and care, plus contracts and payment records. Clear itemised invoices make it easier for your accountant to treat each part correctly. Ask suppliers to itemise.

• Small business website cost breakdown: where the money goes

When is tax treatment less straightforward?

Treatment is less straightforward for large custom builds, software developed for sale, sites mixing personal and business use, or where a website is part of research and development. Professional advice matters most in these cases.

What does this look like in practice?

At Global Bridge Labs (GBL), we see clients ask for itemised invoices at year end. A UK architect's practice asked us to separate design and build, content and the first year of care on one invoice. Their accountant could then treat each line appropriately without chasing extra detail.

• See client work
• Website Design & Development for UK businesses

Website tax checklist

• Ask suppliers for itemised invoices.
• Keep build and running costs separate.
• Record dates of payment.
• Keep contracts with invoices.
• Ask your accountant about capital allowances.
• Review treatment for large projects.

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Next step

Before you pay for a new website, ask your supplier to itemise the invoice into build, content, platform and care. Share it with your accountant.