Key Points
You are making money from content. You are spending money to create it. But are you claiming everything you are entitled to? Most UK content creators are not.
This guide covers every allowable expense for UK content creators in the 2025/26 tax year: equipment and technology, home studio costs, software subscriptions, travel, gifted products, and the expenses most people miss entirely. We include worked examples at three income levels so you can see exactly how much you could save. Whether you are a YouTuber, TikToker, Twitch streamer, podcaster, or Instagram creator, the rules are the same.
What You Need to Do
The "Wholly and Exclusively" Rule
Every expense you claim must pass one test: it must be "wholly and exclusively" for the purposes of your content creation business. This comes from ITTOIA 2005 s34, and it is the single most important rule in UK tax deductions.
In plain English: if you bought it only for your business, you can claim it. If you bought it partly for personal use, you can claim the business portion. If the expense has nothing to do with your business, you cannot claim it at all.
The dual-purpose trap catches many creators. A laptop you use 70% for editing and 30% for personal browsing? Claim 70%. A phone used 60% for business calls and content? Claim 60%. You must be able to justify the split if HMRC asks.
Common Rejected Claims
HMRC regularly rejects claims for everyday clothing (even if only worn on camera), personal grooming, gym memberships, and holidays where you happened to film. The "wholly and exclusively" test is strict. If in doubt, do not claim it, orask an accountant first.
Equipment and Technology You Can Claim
Equipment is typically the largest expense category for content creators. The good news: filming gear, computers, and studio equipment are all deductible through capital allowances. The Annual Investment Allowance (AIA) lets you deduct 100% of qualifying equipment costs in the year of purchase, up to £1 million.
Cameras, Lenses, and Accessories
Audio Equipment
Lighting and Studio Equipment
Computers and Monitors
All equipment purchases qualify for 100% first-year deduction through the AIA. Remember the mixed-use proportion rule: if a laptop is used 70% for business, claim 70% of the cost.
April 2026 Capital Allowance Changes
The AIA stays at £1 million, so most creators are unaffected. However, for items not covered by AIA, a new 40% first-year allowance is available for certain qualifying assets, and the writing down allowance drops from 18% to 14%. In practice, since few individual creators exceed the AIA limit, these changes have limited impact.
Worked Example: YouTuber First-Year Equipment Spend
Software and Digital Subscriptions
Software subscriptions are revenue expenses, not capital allowances. That means you deduct the full cost in the year you pay it. No depreciation, no writing down. This is one of the simplest categories to claim.
| Software / Service | Typical Annual Cost | Deductible? |
|---|---|---|
| Adobe Creative Cloud (Premiere, Photoshop, Lightroom) | £600 | Yes |
| DaVinci Resolve Studio | £269 (one-off) | Yes |
| Final Cut Pro | £300 (one-off) | Yes |
| Epidemic Sound (music licensing) | £150 | Yes |
| Artlist (music + SFX) | £200 | Yes |
| Canva Pro (thumbnails, graphics) | £100 | Yes |
| TubeBuddy / vidIQ (YouTube analytics) | £50-£100 | Yes |
| Notion / project management tools | £50-£100 | Yes |
| Cloud storage (Google One, Dropbox) | £80-£200 | Yes |
| Website hosting and domain name | £50-£200 | Yes |
| Email marketing (Mailchimp, ConvertKit) | £100-£300 | Yes |
| Social media scheduling (Buffer, Later) | £60-£200 | Yes |
Total Potential Claim: £1,500 to £3,000 Per Year
Most full-time creators spend between £1,500 and £3,000 annually on software and subscriptions. At the basic rate (20%), that saves £300 to £600. At the higher rate (40%), it saves £600 to £1,200. Every subscription counts.
Home Studio and Office Costs
If you film, edit, or manage your content business from home, you can claim a portion of your household running costs. You have two methods to choose from, and picking the wrong one could cost you over £1,000 per year.
Method 1: Simplified Expenses (Flat Rate)
The simplified method uses HMRC flat rates based on how many hours per month you work from home.
| Hours Worked from Home per Month | Monthly Flat Rate | Annual Claim |
|---|---|---|
| 25 to 50 hours | £10 | £120 |
| 51 to 100 hours | £18 | £216 |
| 101 hours or more | £26 | £312 |
Method 2: Actual Costs (Proportional)
The actual costs method calculates the proportion of your home used exclusively for business, then applies that percentage to your total household running costs. This almost always saves more if you have a dedicated studio room.
Step-by-Step Calculation
Worked Example: Creator with Dedicated Studio Room
4-bedroom house, 1 room used as a dedicated studio (25% business use)
| Scenario | Simplified | Actual Costs | Difference |
|---|---|---|---|
| Spare bedroom studio, small flat | £312 | £1,800 | +£1,488 |
| Dedicated room, 4-bed house | £312 | £4,500 | +£4,188 |
| Part-time, no dedicated room | £216 | £150 | Simplified wins |
Capital Gains Tax Warning
If you use the actual costs method and claim a proportion of your mortgage interest, you may lose part of your Private Residence Relief when you sell the property. The portion of your home used "exclusively" for business could attract Capital Gains Tax on sale. This does not apply if you use the simplified method. Discuss this with your accountant before choosing.
Not sure which method saves you more? The difference can be thousands of pounds per year. Our team can run the numbers for your specific situation.
Talk to our team about your home office claimTravel and Subsistence
Travel for business purposes is deductible, but the "wholly and exclusively" rule is strictest here. HMRC scrutinises travel claims more than almost any other expense category.
What You Can Claim
| Vehicle | First 10,000 Miles | After 10,000 Miles |
|---|---|---|
| Car or van | 45p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
What You Cannot Claim
Travel: The Strictest Test
HMRC applies the "wholly and exclusively" rule most strictly to travel. A week-long trip to Bali where you film three videos is not a business trip. It is a holiday with some filming. Unless the primary purpose was business and the itinerary supports that, HMRC will reject the claim. Keep a travel log noting the business purpose of every journey.
Gifted Products, PR Packages, and Barter Income
This is the area where HMRC has been most active with content creators. In 2023 alone, HMRC sent over 2,300 nudge letters to creators about undeclared gift income. Under DAC7, platform reporting now makes it even easier for HMRC to identify discrepancies.
When Gifted Products Are Taxable
Products sent with an expectation of promotion are taxable at their retail value. HMRC uses a rough threshold of £50. Above that, if the brand expects content or coverage in return, you must declare it.
Taxable
- Products sent with a brief or contract
- PR packages where review is expected
- Products you feature in paid content
- Anything over £50 with promotion expectation
Potentially Not Taxable
- Genuinely unsolicited items under £50
- Items returned to the brand after review
- Products with no promotion expectation
- Free samples widely distributed (no targeting)
Record everything: brand name, date received, item description, and retail value. You can offset related expenses (filming time, editing costs, props) against the taxable income from gifted products.
Other Expenses You Might Be Missing
Professional Services
Insurance
Marketing and Promotion
Training, Phone, and Bank Fees
What You Absolutely Cannot Claim
These are the most common rejected claims HMRC sees from content creators. Getting this wrong can trigger an investigation and penalties.
Even if only worn on camera. HMRC case law (Mallalieu v Drummond) specifically excludes ordinary clothing.
Hair, makeup, skincare for general appearance. Stage makeup for specific characters may qualify.
Even for fitness content. Your personal fitness is not a business expense.
Parking tickets, HMRC late filing penalties, and speeding fines are never deductible.
Taking a brand representative to dinner is not deductible. Business lunches fail the wholly and exclusively test.
Only the business proportion. Claim 60% if 60% of use is business.
Worked Examples: How Much Can You Actually Save?
Here are three real-world scenarios showing what UK content creators at different income levels can typically claim, and how much tax they save.
Scenario 1: Part-Time Creator in Leeds, £15,000 Profit
Scenario 2: Full-Time Creator in Shoreditch, £60,000 Profit
Scenario 3: High-Earning Creator in Edinburgh, £120,000 Profit
At this income level, every £1,000 of expenses saves at least £400 in tax. The personal allowance taper between £100k and £125,140 creates an effective 60% marginal rate, making expense claims even more valuable. Consider a limited company structure at this level for additional savings.
Record-Keeping: What HMRC Expects
HMRC requires you to keep records of all business income and expenses for at least five years after the 31 January submission deadline for the relevant tax year. For the 2025/26 tax year, that means keeping records until at least 31 January 2032.
What to Keep
Recommended Tools
Use cloud accounting software to automate record-keeping. The three most popular options for UK content creators are Xero, QuickBooks, and FreeAgent. All three connect to your bank account, categorise transactions, and generate the reports you need for Self Assessment. Read our Xero vs QuickBooks comparison for a detailed breakdown.
Build the Weekly Habit
Spend 15 minutes every Sunday scanning receipts and categorising expenses. This one habit prevents the January panic of digging through a year's worth of shoeboxes, and it means you never miss a deduction. Use your phone's camera or your accounting app's receipt scanner.
Making Tax Digital: What Changes in April 2026
Making Tax Digital (MTD) for Income Tax Self Assessment is the biggest change to UK tax administration in a generation. It replaces the annual Self Assessment return with quarterly digital submissions. Here is who it affects and when.
Self-employed with income over £50,000 must use MTD-compatible software and submit quarterly updates
Threshold drops to £30,000
Threshold drops to £20,000
There is a penalty easement in the first year: HMRC will not charge late filing penalties for quarterly updates submitted within the first 12 months. But you still need the software set up and your records digital.
If you are already using Xero, QuickBooks, or FreeAgent, you are largely covered. Read our Making Tax Digital guide for the full detail.
Need help getting MTD-ready? We set up MTD-compatible systems for content creators across the UK. Your first consultation is free.
Book a free call to get startedFrequently Asked Questions
Can I claim camera equipment as a business expense in the UK?
Yes. Cameras, lenses, lighting, microphones, and other filming equipment are fully deductible via the Annual Investment Allowance. If you also use the equipment for personal purposes, claim only the business proportion. A camera used 80% for content and 20% personal allows you to claim 80% of the cost.
Can content creators claim clothing on tax?
Generally no. HMRC does not allow deductions for everyday clothing, even if worn only on camera. The exception is costumes or specialist clothing exclusively for content that is not suitable for everyday wear. Regular fashion, gym wear, and casual clothing do not qualify.
How do I claim home office deductions as a content creator?
You have two options: the simplified flat rate (£10-£26 per month based on hours worked from home) or the actual costs method (proportional share of rent, council tax, electricity, heating, and insurance). Creators with a dedicated studio room typically save £500 to £1,500 more per year using actual costs.
Is travel for filming tax deductible in the UK?
Yes, if wholly and exclusively for business. Travel to filming locations, brand meetings, events, and collaborations qualifies. Claim 45p per mile for the first 10,000 miles. Holidays where you happen to film, your regular commute, and personal detours do not qualify.
Do I pay tax on gifted products as a UK content creator?
In most cases yes. Products over £50 sent with a promotion expectation are taxable at their retail value. Record the brand name, date received, item description, and value. You can offset related expenses like filming and editing time against this income.
Should I use simplified expenses or actual costs for my home office?
If you have a dedicated studio room, actual costs almost always saves more. A creator using one room of a four-bedroom house could claim around £4,500 per year using actual costs versus just £312 using the flat rate. However, the simplified method avoids the Capital Gains Tax complication on property sale.
What records do content creators need to keep for HMRC?
Keep all receipts, bank statements, invoices, gifted product records, mileage logs, and utility bills for at least five years after the 31 January submission deadline. From April 2026, creators earning over £50,000 must keep digital records using MTD-compatible software.
What is Making Tax Digital and does it affect content creators?
MTD requires digital record-keeping and quarterly submissions to HMRC. From April 2026, it applies if your income exceeds £50,000. From April 2027, the threshold drops to £30,000. Use Xero, QuickBooks, or FreeAgent to stay compliant.
Can I claim software subscriptions as a business expense?
Yes. Software like Adobe Creative Cloud, editing tools, music licensing, analytics tools, and cloud storage are fully deductible revenue expenses. You deduct the full cost in the year you pay, with no need for capital allowances.
How much can a content creator save through tax deductions?
It depends on your income level. A part-time creator earning £15,000 might save around £418. A full-time creator on £60,000 could save approximately £3,781. A high earner at £120,000 could save over £8,400. Every £1,000 of legitimate expenses saves £200 to £470 in tax.
What expenses can content creators NOT claim?
You cannot claim everyday clothing, personal grooming, gym memberships, fines, client entertainment, or the personal portion of shared expenses like phones and internet. HMRC specifically flags these as common incorrect claims from content creators.
Do capital allowance rules change for content creators in April 2026?
The Annual Investment Allowance stays at £1 million, so most creators are unaffected. The writing down allowance drops from 18% to 14% for items outside AIA, and a new 40% first-year allowance applies to certain assets. In practice, few individual creators are impacted.
Stop Leaving Money on the Table
The average UK content creator misses thousands in legitimate deductions. Our specialist content creator accountants review your expenses line by line and make sure you claim everything you are entitled to.
Related Reading
YouTuber Tax UK: Complete Guide 2026
Everything UK YouTubers need to know about tax
OnlyFans Tax UK: Complete Guide 2026
Tax guide for UK subscription content creators
Tax Deductions for Freelancers UK
Complete list of allowable expenses for freelancers
Making Tax Digital Guide
What you need to know about MTD compliance
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