This includes any amount you spend in relation to advertising or promoting your product or brand. This can be offline or online depending on the channel you see as the best to reach your consumers.
What's included
Instagram / Facebook / Google / LinkedIn online advertising costs
Costs involved in setting up a new website
Posters on the London underground
Fees for TV or radio ads
Costs associated with advertising or PR agencies
Paid press releases
Bulk mailshots
Domain names
What's not included
Software Subscriptions shouldn't be categorised here.
Taking clients or suppliers out for dinner or drinks does not qualify as marketing cost. Nor does event hospitality.
How is it taxed?
You can reclaim the cost of all sales and marketing costs you incur, as long as you can prove they are entirely business-related.
Just be mindful to check that none of them include entertaining costs as these cannot be offset against your corporation tax bill.
Tax tips
You can claim the cost of a sponsorship deal as a business expense, but make sure to distinguish these costs with donations.