New creators
Bought kit, software and branding before monetising or taking paid work.
Claiming costs from before your creator business started
Most creators spend on software, branding and kit before the first payout. Many of those costs can still go on your first return.
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Part of our guide to creator tax guide UK.
Quick answer
Costs you paid in the seven years before your creator business started can usually be claimed as if paid on your first day of trading, provided they would have been allowable once you were trading. Kit such as cameras and laptops is treated under the cash basis or capital allowances rules, and any personal use must be left out.
On this page
Contents
Who this is for
Is this you?
Employees going self-employed
Building a channel on the side before registering with HMRC.
Income streams
Everything we handle for you
- First AdSense or Creator Rewards payouts
- First paid brand deal
- Affiliate commission
- Subscriptions and tips
Sound familiar?
Problems you face, answered
There is no single fixed date. A trade generally starts when you are able to supply what you offer and begin doing so, for example taking your first paid brand deal or switching on monetisation. Building an audience before that is usually preparation.
Often, if you now use it in the business. Under the capital allowances rules, equipment bought for personal use and later brought into the trade is treated at its market value when first used for the business, capped at what you paid (section 13 CAA 2001). Only the business share counts. Our camera, laptop and phone guide covers mixed use.
Tax explained
How Pre-Trading Expense Relief Works
What is the pre-trading rule? Section 57 ITTOIA 2005 treats revenue costs paid in the seven years before a trade starts as if paid on the first day of trading. HMRC's Business Income Manual at BIM46351 confirms each cost must still pass the wholly and exclusively test and must be a cost that would have been allowable after the start.
Which creator costs typically qualify? Editing software subscriptions, a domain and website, branding design, music or stock footage licences and props bought for planned content are common examples. Everyday clothing, haircuts and general living costs stay disallowed, as our clothes and make-up guide explains.
How is kit bought before the start treated? Capital items such as cameras, laptops and lighting are treated as bought on the first day of trading under section 12 CAA 2001. If you use the cash basis, you can usually deduct them as an expense; under traditional accounting you claim capital allowances, as GOV.UK explains.
What if the claim creates a loss? Pre-trading costs all land in your first accounting period, so a first-year loss is common. That loss may be set against salary or earlier years' income, as our guide on using a creator loss against your salary explains.
Source: HMRC Business Income Manual: BIM46351 pre-trading expenditure · legislation.gov.uk: ITTOIA 2005, section 57 · legislation.gov.uk: Capital Allowances Act 2001, section 12 · legislation.gov.uk: Capital Allowances Act 2001, section 13 · GOV.UK: Expenses if you're self-employed: office, property and equipment · GOV.UK: Register for Self Assessment
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
At a glance
Pre-trading costs at a glance
| Cost | Usually claimable? | How |
|---|---|---|
| Editing software, website, branding | Yes, if for the business | Expense on day one |
| Camera, laptop or lighting bought for the channel | Business share | Cash basis expense or capital allowances |
| Kit you owned before for personal use | Business share | Market value when brought in, capped at cost |
| Everyday clothes and haircuts | No | Personal benefit |
| Costs more than seven years before starting | No | Outside the time limit |
Action plan
Claiming pre-trading costs on your first return
- 1
Fix your start date
Record when you first offered paid work or monetised.
- 2
Gather receipts
Collect proof of costs from the previous seven years.
- 3
Remove personal use
Keep only the business share of mixed-use items.
- 4
Split costs and kit
List running costs separately from equipment.
- 5
Add to your first year
Include them in your first Self Assessment accounts.
Allowable expenses for content creators
How HMRC’s rules apply to content creators
If you are self-employed
Self-employed costs must be incurred wholly and exclusively for your trade. If you use the £1,000 trading allowance, you cannot also deduct actual expenses against that same income. Equipment treatment depends on cash basis or traditional accounting.
If you run a limited company
A limited company deducts costs incurred wholly and exclusively for its business. Equipment may need capital allowances rather than an immediate expense deduction. Personal use or company-paid private costs can create a taxable benefit or director’s loan entry; company ownership is not a blanket deduction.
For separable mixed-use costs, such as a phone bill, claim only the identifiable business proportion and keep evidence. This does not make ordinary clothing or every dual-purpose purchase deductible. A receipt alone does not prove a business purpose: retain the brief, invoice or usage record too.
Costs to review for your work
- Business-use cameras, lighting, audio equipment and editing software
- Editors, thumbnail designers, virtual assistants and licensed music
- Travel to business shoots and the evidenced business share of home-working costs
Everyday clothing, ordinary grooming, personal meals, private gaming and fines are generally not deductible. Qualifying costumes or protective clothing and business-travel subsistence have different rules. Client entertaining is generally disallowed. Receiving a product from a brand does not automatically create an expense: record the income treatment separately and deduct only an allowable business cost.
HMRC: self-employed expensesHMRC: business travelHMRC: clothingHMRC: company deductionsHMRC: capital allowancesHMRC: creator income and gifts
Keep records alongside our creator expenses checklist, or discuss your costs with our bookkeeping team.
General UK guidance, not personal advice. The deduction depends on your facts and accounting basis.
Structure
Sole trader or limited company?
£
Sole trader£46,111
Limited company£46,091
Illustrative estimate only. Uses the published 2026/27 tax configuration. Assumes a single-director company drawing all profit, with no Employment Allowance. Excludes expenses, student loans, pensions, other income, Scottish rates and individual circumstances. Not tax advice.
Diary
Key deadlines
5 October
Register for Self Assessment for the previous tax year
31 October
Paper tax return deadline
31 January
Online return, balancing payment and first payment on account
31 July
Second payment on account
Making Tax Digital for Income Tax
Qualifying income is total turnover from self-employment and property income before expenses, based on the previous year’s tax return.
- Since 6 April 2026, sole traders and landlords with qualifying income of more than £50,000 must keep digital records and send quarterly updates. If the 2024 to 2025 tax return showed qualifying income of more than £50,000, you need to use Making Tax Digital for Income Tax from 6 April 2026.
- Quarterly updates are due by 7 August, 7 November, 7 February and 7 May (the 7 May deadline falls in the following tax year).
- The threshold drops to more than £30,000 from 6 April 2027. If the 2025 to 2026 tax return showed qualifying income of more than £30,000, you need to use Making Tax Digital for Income Tax from 6 April 2027.
Monthly accounting packages
Accountant packages for content creators
Self-employed or limited company, choose the support that fits how you trade. We review income such as First AdSense or Creator Rewards payouts, First paid brand deal, Affiliate commission as part of agreeing your scope.
Self-employed accountant packages for content creators
Trading in your own name? Choose support for your personal tax return and, where included, bookkeeping and MTD Income Tax updates.
Up to £25,000: Starter £299, Complete £475 a year. £25,000–£50,000: Starter £499, Complete £599 a year. Above £50,000, fees use the upper limit of your band: Starter 1%, Complete 0.75% (minimum £39.99 + VAT a month). Monthly payments are the annual fee divided by 12, excluding VAT. Starter does not include bookkeeping. Turnover above £1 million is quoted individually.
Self Employed Starter
Turnover: Up to £25,000
For sole trader creators who just need their tax return done properly
£24.92
per month + VAT
£299.00 per year + VAT · Bookkeeping not included
- Your annual Self Assessment tax return, prepared and filed
- All your creator income streams covered: AdSense, brand deals, affiliates, tips and subscriptions
- Gifted products, PR trips and freebies declared correctly
- Allowable expense review so you claim everything you are entitled to
- Deadline reminders ahead of every filing and payment date
- Free basic tax advice by email through the year*
Self Employed Complete
Turnover: Up to £25,000
For full-time self-employed creators who want their books kept for them
£39.58
per month + VAT
£475.00 per year + VAT · Bookkeeping included
- Everything in Self Employed Starter
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Making Tax Digital for Income Tax quarterly updates, where required
- Payment on account planning so January never surprises you
- Sole trader vs limited company review as your income grows
- Quarterly check-in on your numbers and tax position
Limited company accountant packages for content creators
Trading through a company? Choose support for company accounts, Corporation Tax and the director services included below.
Essential/Compliance
For creators who have just set up a limited company
From £45.83
per month + VAT
- Year-end company accounts for your creator business
- Corporation Tax return (CT600) and tax computation
- Confirmation statement preparation and filing support (excludes the Companies House filing fee)
- One director Self Assessment return (salary and dividends from the same company)
- Deadline reminders ahead of every filing date
- Free basic tax advice by email through the year*
Core/Complete
For full-time creators with brand deals and platform income
From £62.50
per month + VAT
- Everything in Essential/Compliance
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Quarterly Making Tax Digital VAT returns
- Director payroll with RTI filing and pension submissions
- Quarterly review call on your numbers and tax position
- Gifted items, overseas payouts and payment platform reconciliation
Growth
For creator businesses with editors, managers or a team
From £75.00
per month + VAT
- Everything in Core/Complete
- Payroll for up to five team members, such as editors or assistants
Starting fees exclude VAT. Your turnover, records and agreed work determine the final quote. *Basic tax advice is free; technical work is quoted separately. MTD support applies where required.
See all fees and one-off servicesWant this off your plate?
Talk through your platform income, allowable expenses and next steps with a creator accountant.
Book your free creator tax callPublished by influencers.accountants
Last updated: 2026-11-13
FAQs
Frequently asked questions
Up to seven years before the trade began, under section 57 ITTOIA 2005. Costs older than that cannot be claimed.
No. The rule looks at when the trade started, not when you registered. You still need to register for Self Assessment by 5 October after the end of the tax year in which you start.
No. The trading allowance replaces actual expenses. If your costs exceed £1,000, claiming them is usually better.
A similar rule applies to companies under section 61 CTA 2009. Costs you paid personally before the company existed need careful handling.
Yes. Book a free introductory call; we confirm what is needed and quote any return or advice work before starting.
Keep reading
Related pages
YouTuber expenses: what you can claim in 2026/27
From cameras and lighting to editing software and home studios, here is exactly what UK YouTubers can and cannot claim.
Accountant for content creators
Video, audio, streaming and newsletters. If you make things people watch, read or listen to, we turn the payouts into clean accounts and a filed return.
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