Recording with Voxiferi is tax deductible
There are official sanctioned guidelines around the efficiency of digital marketing and advertising that benefit Voxiferi customers and their use of podcasting to grow their business profiles.
What does this mean as an advantage for Voxiferi customers ?
This means that the cost of appearing on a podcast slot, segment or even an entire show is classified as permitted marketing expenditure and HMRC allow this as an allowable marketing / advertising cost. In full compliance with the latest rules that HMRC have published allowing customers to benefit hugely from getting on-air.
This means that podcasting becomes an extremely attractive investment for our customers to grow their brand and their presence by the associated tax efficient benefits that HMRC afford organisations and sole traders.
Podcasting as a digital marketing tax efficient purchase
Our working with customers is classified as digital marketing and falls fully within HMRC current guidelines (last updated 29th September 2022). The guidelines state that as part of a business (or sole trader) integral part of normal operations and growth, certain marketing expenses can be deducted from your pre-tax profit.
By keeping our costs low by building our own content delivery network (making us unique in our space), rather than passing the cost of broadcast and bandwidth via a third party provider. By specifically constructing our offerings at a level unmatched by any other provider, we also ensure that the invoice value of the recording meets the expectations of HMRC reporting.
HMRC will allow you to claim business expenses for
- The full cost of advertising you’ve done in newspapers or online
- Bulk mail advertising (or “mailshots”), digital marketing, including podcasts
- Any costs associated with free samples you’ve produced and distributed
- Website hosting and maintenance costs
The rules are specific that advertising expenses are considered deductible as business expenses IF THEY ARE NECESSARY AND INCURRED SOLELY for the purpose of the business. Appearing in a podcast meets this definition and is not entertainment, e.g expensing a meal with a prospective customer.
To be allowable as a tax deduction whether under the corporation tax or income tax rules, most expenses must be incurred ‘wholly and exclusively for the purposes of the trade’. Unlike the equivalent rule for employment expenses, the expense is not required to be ‘necessarily’ incurred. This means that as long as an expense is incurred for the business and only for that purpose, a deduction is given.
Are Voxiferi Studios an applicable supplier of online advertising ?
A supplier, such as Voxiferi Studios is classified by HMRC as a provider of online advertising services as we are specifically involved in
- Demand-side platforms (DSP) (Voxiferi Studios as a production partner)
- Supply-side platforms (SSP) (Voxiferi Studios as a broadcaster)
- Ad exchanges (Voxiferi Connect)
- Publisher and advertiser ad servers (Voxiferi Connect)
- Analytic programmes (Voxiferi Content Delivery Network)
This list is non-exhaustive. Any online service which facilitates advertising online is classified, officially and recognised as an online advertising service.
Read our one page handout here
For more information please speak to your tax adviser, accountant or book keeper or contact HMRC directly for their latest guidance