U.K. tax position

Can I reclaim cost of adwords?

[loial]

My U.K. web site is actually making money, somewhat surprisingly.
I am wondering about putting it on a proper business footing.
Any one got experience of doing this in the U.K? Can I reclaim the cost of my adwords if I set up as a sole trader or some other form of business?

[dmorison]

Can I reclaim the cost of my adwords if I set up as a sole trader or some other form of business?

Yes, although you don't really "reclaim" anything as such as a sole trader.

Your AdWords invoices are just part of the expenses of running your business - which at the end of the year you simply subtract from your revenue and pay income tax on the result (your profit).

[dougs]

It is a standard business expense. Be aware that google.co.uk now charge vat, so you can reclaim this every 90 days.

Doug

[jneill]

As you probably already know, but just in case you don't.... you can only "reclaim" VAT if you are VAT registered. It's probably not worth registering if your VATable turnover is less than £56k per year.

See [customs.gov.uk...] for more details.

James