Last updated: 14 October 2026
Is a LinkedIn subscription a tax-allowable expense for your company?
Yes, if it’s used for the business. A LinkedIn Premium, Sales Navigator or Recruiter subscription paid by your company to find clients, recruit staff or market its services is an allowable expense against corporation tax. If the company pays for an employee’s or director’s subscription and it’s mainly for their personal career, such as job hunting, it may be a taxable benefit. Sole traders can deduct the cost too, as long as it’s wholly and exclusively for the business.
Different LinkedIn products
| Product | Typical use | Allowable? |
| Sales Navigator | Finding and contacting prospects | Yes |
| Recruiter Lite or Recruiter | Hiring staff | Yes |
| Premium Business | Networking and research for the company | Yes, if business use |
| Premium Career | Personal job hunting | No, or a taxable benefit if paid by employer |
| LinkedIn advertising | Promoting the business | Yes |
VAT on LinkedIn subscriptions
LinkedIn is based in Ireland. For a VAT-registered UK business buying with its VAT number, the reverse charge applies: you account for output VAT and reclaim it as input VAT in the same return, so there’s no net cost. Without a VAT number, LinkedIn may charge UK VAT, which you can reclaim with a valid invoice.
Example
Priya’s recruitment consultancy pays £1,200 a year for LinkedIn Recruiter Lite and £600 for Sales Navigator, all used to find candidates and clients. Both are allowable, reducing corporation tax by £450 at 25%. Her company is VAT registered, so it accounts for reverse charge VAT. When her assistant’s personal Premium Career subscription was briefly paid by the company, it was taxable as a benefit until the assistant took it over.
Employee or director benefit?
Professional subscriptions paid for employees are exempt if the body is on HMRC’s approved list (List 3), but LinkedIn isn’t a professional body. However, if the subscription is used for the employer’s business, it’s simply a business cost and there’s no benefit. Private use that’s significant may create a benefit.
Other online subscriptions
- Software subscriptions (Microsoft 365, accounting packages): allowable
- Trade publications and industry news: allowable
- Streaming services: not allowable unless genuinely for business
- Online learning to update existing skills: allowable
Common mistakes
- Claiming personal Premium Career subscriptions
- Missing the reverse charge on the VAT return
- Not keeping invoices from LinkedIn
- Treating LinkedIn as a professional body subscription
Records to keep
Download invoices from your LinkedIn account and keep a note of the business purpose, such as recruitment or prospecting.
Corporation tax relief timing
Subscriptions are revenue costs, so the company deducts them in the accounting period they relate to. If you pay an annual subscription part-way through the year, the accounts may spread it with a prepayment, and the tax deduction follows the accounts. Sole traders using the cash basis deduct it when paid.
Frequently asked questions
Can a sole trader claim LinkedIn Premium?
Yes, for business use.
Is LinkedIn advertising subject to VAT?
Yes, through the reverse charge for VAT-registered buyers.
Can I claim if I use it for both?
Claim the business proportion.
Do I need to report it on a P11D?
Only if it’s a personal benefit.
Related: business lunch costs, phone and internet costs and passport and visa costs.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with company expenses. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
