What types of insurance can influencers claim?

Influencers can typically claim professional indemnity, public liability, and equipment insurance as fully deductible business expenses. Cyber insurance, legal expenses coverage, and business interruption insurance may also qualify if directly related to business activities. The key test is whether the insurance is "wholly and exclusively" for business purposes. For mixed-use policies, only the business portion is deductible. Proper documentation is essential, including policy details and payment records, which should be maintained for at least six years for HMRC compliance.

Can I claim life insurance as a business expense?

Generally, personal life insurance premiums are not tax-deductible for influencers unless the policy is specifically required as security for a business loan. In that limited circumstance, the premiums may qualify as allowable expenses. For most influencers operating as sole traders, life insurance remains a personal expense. If operating through a limited company, different rules may apply for key person insurance, but this requires specific professional advice. The fundamental principle remains that the expense must be wholly and exclusively for business purposes.

How do I claim insurance on my tax return?

You claim deductible insurance premiums in the "Allowable Business Expenses" section of your self-assessment tax return. Include the total amount paid during the tax year (6 April to 5 April). For the 2024/25 tax year, remember the online filing deadline is 31 January 2025. If you have mixed-use policies, only claim the business portion and maintain supporting calculations. Using tax planning software can simplify this process with automatic expense categorization and real-time tax calculations, ensuring accurate claims and optimal tax savings.

What records do I need for insurance claims?

You should maintain insurance certificates, policy documents, premium payment receipts (bank statements or invoices), and for apportioned claims, documentation supporting your business use percentage. Digital records are acceptable to HMRC. Keep these records for at least six years after the relevant tax year ends. If using equipment insurance, maintain usage logs or other evidence supporting your business percentage claim. Proper record-keeping is crucial for defending your claims if HMRC enquires, and modern tax planning platforms can help organize and store these documents securely.

Tax-Deductible Insurance for Influencers

Understanding business expenses for influencers

As an influencer operating as a sole trader or through a limited company, you're running a legitimate business in the eyes of HMRC. This means you can deduct "wholly and exclusively" for business purposes expenses from your taxable profits. The question of what insurance is tax-deductible for influencers hinges on this fundamental principle. If an insurance policy protects your business assets, income, or liability, it's likely an allowable expense. Getting this right can save hundreds or even thousands of pounds in tax each year, making proper record-keeping essential.

Many influencers overlook legitimate business expenses, particularly when it comes to insurance policies. Understanding what insurance is tax-deductible for influencers requires examining both the type of coverage and how directly it relates to your business activities. The 2024/25 tax year maintains the same approach to business expenses as previous years, with the trading allowance offering a simplified £1,000 deduction for those with lower expenses. However, for most serious influencers, itemizing actual expenses including insurance typically yields greater tax savings.

Professional indemnity insurance

Professional indemnity insurance protects you against claims of professional negligence, errors, or omissions in your work. For influencers, this could include situations where a brand claims your content didn't deliver the promised results, or if advice you give leads to financial loss for a follower. This is typically fully tax-deductible as it directly protects your business operations and income.

The cost of professional indemnity insurance varies based on your coverage limits and the nature of your content, but premiums typically range from £200 to £800 annually for most influencers. When considering what insurance is tax-deductible for influencers, professional indemnity consistently qualifies as it's directly related to your professional activities. Using a dedicated tax planning platform can help you track these premiums alongside other business expenses throughout the tax year.

Public liability insurance

Public liability insurance covers you if someone is injured or their property is damaged because of your business activities. For influencers, this becomes relevant during meet-ups, events, or even when filming in public spaces. If you accidentally damage property while creating content or a member of the public is injured during a business-related activity, this insurance provides crucial protection.

This type of insurance is generally fully tax-deductible as it directly relates to business risk management. Premiums typically cost between £100 and £500 annually depending on your coverage levels and business activities. When evaluating what insurance is tax-deductible for influencers, public liability insurance clearly qualifies under HMRC's "wholly and exclusively" rule for business expenses.

Equipment and contents insurance

Your business equipment represents significant investment - cameras, lighting, computers, and other technology essential for content creation. Equipment insurance protecting these assets against theft, damage, or loss is typically tax-deductible to the extent the equipment is used for business purposes. If you use equipment for both business and personal purposes, you can only claim the business portion.

For example, if your £2,000 camera is used 80% for business and 20% personally, you can claim 80% of the insurance premium. Keeping detailed records of business use is crucial for justifying these claims if HMRC enquires. Modern tax planning software with expense tracking features can automatically calculate these proportional claims and maintain the necessary documentation.

Other potentially deductible insurance policies

Beyond the core business insurance types, several other policies may be partially or fully deductible depending on your specific circumstances:

Cyber insurance: Protects against data breaches, hacking, or online fraud - increasingly relevant for influencers storing sensitive information
Legal expenses insurance: Covers legal costs for contract disputes or copyright issues
Business interruption insurance: Protects lost income if you cannot work due to insured events
Travel insurance: For business trips abroad, the business portion is deductible

When determining what insurance is tax-deductible for influencers in these categories, the key test remains whether the coverage is wholly and exclusively for business purposes. Mixed-use policies require careful apportionment between business and personal elements.

Insurance policies that typically aren't deductible

Not all insurance qualifies as tax-deductible business expenses. Understanding what insurance isn't deductible is equally important for maintaining HMRC compliance. Typically non-deductible policies include:

Personal life insurance unless required for a business loan
Private medical insurance for yourself unless provided through your limited company under specific arrangements
Home insurance unless you can clearly identify the business portion
Motor insurance unless you maintain detailed mileage records separating business and personal use

The fundamental principle remains: the insurance must be incurred wholly and exclusively for business purposes. Any personal benefit typically disqualifies the expense unless it can be clearly apportioned.

Documentation and record-keeping requirements

To successfully claim insurance premiums as business expenses, you must maintain proper records for at least six years after the relevant tax year ends. This includes insurance certificates, policy documents, premium payment records, and for mixed-use policies, documentation supporting your business use percentage calculations.

HMRC may request evidence supporting your claims, particularly for larger amounts or unusual insurance types. When considering what insurance is tax-deductible for influencers, the ability to demonstrate the business purpose is as important as the expense itself. Using specialized tax planning software can streamline this documentation process with digital receipt capture and automatic categorization.

How to claim insurance deductions

Claiming deductible insurance premiums happens through your self-assessment tax return. You'll include these expenses in the "Business Expenses" section, specifically noting insurance costs. For the 2024/25 tax year, the deadline for online submission is 31 January 2025, with payments due by the same date.

The process involves:

Calculating your total business income
Deducting all allowable expenses including insurance
Reporting the net profit on your tax return
Paying tax on this profit at the relevant income tax rates (20%, 40%, or 45% depending on your total income)

For influencers operating through limited companies, insurance premiums are claimed through the company's corporation tax return instead, with corporation tax currently at 19% for profits up to £50,000 and 25% for profits over £250,000 (with marginal relief between these thresholds).

Using technology to optimize your tax position

Manually tracking insurance premiums and other business expenses can be time-consuming and prone to error. Modern tax planning platforms automate this process, providing real-time visibility into your tax position throughout the year. These tools can help you understand exactly what insurance is tax-deductible for influencers in your specific situation and ensure you claim all legitimate expenses.

Beyond simple tracking, advanced platforms offer tax scenario planning capabilities, allowing you to model different expense scenarios and their impact on your final tax bill. This proactive approach to tax planning can help influencers make informed decisions about insurance coverage levels and timing of premium payments to optimize their tax position.

By leveraging technology, influencers can focus on content creation while ensuring their business remains tax-efficient and compliant. The question of what insurance is tax-deductible for influencers becomes much simpler with proper systems in place to track, categorize, and claim these legitimate business expenses.

What insurance is tax-deductible for influencers?