Can I Claim Business Books as a Business Expense?
Yes - books related to your business or professional development are deductible.
What HMRC Says
Books and publications that relate to your business or help maintain/update your professional skills are allowable.
When You Can Claim
- Technical books for your industry
- Business strategy and management books
- Professional journals and publications
- Industry magazines
When You Cannot Claim
- Fiction and entertainment books
- Books unrelated to your business
- Newspapers (unless trade press)
Understanding Business Books Expenses
Books and publications related to your business or professional practice are a deductible expense for your limited company. The principle is the same as for training: the material must relate to your current trade and help you maintain or improve the skills you use in your business. A software developer buying a book on system architecture is clearly deductible. A software developer buying a novel is clearly personal. The grey area lies in between.
The types of books and publications that are typically deductible include: technical reference books for your field (programming, engineering, law, accounting, etc.); business strategy and management books that help you run your company; industry-specific journals and trade publications; professional body magazines and newsletters; and ebooks and audiobook versions of any of the above. The format does not matter - physical books, Kindle purchases, Audible subscriptions for business audiobooks, and digital publications all receive the same tax treatment.
HMRC is generally relaxed about book expenses because the amounts are small and the business connection is usually clear. A company director buying £200-500 worth of business books per year is unlikely to face challenge. Where issues arise is with high-volume claims or purchases that are clearly personal. An Amazon order for business books mixed with children's fiction and cookbooks needs careful separation - only the business books are deductible.
For VAT-registered companies, physical books in the UK are zero-rated for VAT (0% rate), meaning there is no VAT to reclaim on printed books. However, ebooks and digital publications are standard-rated at 20% VAT (this changed from zero-rate in May 2020, but was reverted to zero-rate from 1 May 2020 for digital publications too, matching physical books). In practice, the zero rate on both physical and digital books means VAT is not a significant factor for this expense category.
An Audible subscription is worth mentioning specifically because many directors use it. If you use Audible primarily for business-related books, the subscription is deductible. If it is primarily for fiction and entertainment, it is personal. A mixed-use subscription should be apportioned. At £7.99/month, the tax saving is modest, but over years it adds up - and maintaining clean records of which titles are business-related helps justify the claim.
Real-World Examples
Developer buying technical reference books
Sam runs a software consultancy and buys three technical books from Amazon at a combined cost of £120: a TypeScript reference, a cloud architecture guide, and a book on system design. All three are directly relevant to his business and fully deductible. He keeps the Amazon order confirmation showing the titles and amounts.
Director with a business book habit
Maria reads two business books per month, spending around £25/month on a mix of Kindle and paperback purchases covering leadership, marketing strategy, and industry trends. Her annual spend of £300 is deductible. She keeps a simple list of titles to demonstrate the business relevance if questioned.
Mixed Amazon order with personal and business books
Tom places an Amazon order for £85 containing three business books (£55) and two fiction novels (£30). Only the £55 for business books is deductible. He should ideally place separate orders for business and personal items, or clearly identify the business books on the receipt when filing expenses.
Professional journal subscription
Hannah, a chartered engineer, pays £180/year for a subscription to an engineering journal and £95/year for an industry magazine. Both are directly related to her professional practice and fully deductible. The subscriptions also help her meet CPD requirements for her professional body.
Common Mistakes to Avoid
- Claiming fiction, cookbooks, or personal interest books as business expenses - the books must be related to your trade or professional skills, not your hobbies
- Not separating business and personal books in mixed Amazon orders - keep business purchases identifiable, ideally on separate orders or at minimum marked on the receipt
- Claiming a general Kindle Unlimited subscription when most reading is personal - if the subscription is primarily for personal books, it is not a business expense regardless of occasional business titles
- Forgetting that books are a deductible expense at all - many directors pay for business books personally out of habit when the company should be paying
Frequently Asked Questions
Can I claim books through my limited company?
Yes, if the books are related to your business or professional development. Technical references, business strategy books, industry publications, and professional journals are all deductible. The cost is an allowable expense against corporation tax. Fiction and personal-interest books are not claimable.
Can I claim Audible or Kindle subscriptions as a business expense?
If you use the subscription primarily for business-related audiobooks or ebooks, yes. If the subscription is primarily for personal entertainment, no. A mixed-use subscription should be apportioned. Keep a record of which titles you listen to or read for business purposes.
Are business books zero-rated for VAT?
Both physical and digital books are zero-rated for VAT in the UK (0% rate). This means there is no VAT charged on book purchases and no VAT to reclaim. The full purchase price is the deductible cost. This applies equally to printed books, ebooks, and audiobooks.
Can I claim a newspaper subscription through my company?
General newspapers (The Times, Guardian, etc.) are typically considered personal reading and not deductible. Trade press and industry-specific publications are deductible. If you can demonstrate that a specific newspaper subscription is genuinely necessary for your business (e.g., Financial Times for a financial services company), there may be an argument, but it is a grey area.
Is there a limit on how many books I can claim?
There is no specific limit. HMRC expects the claims to be reasonable and genuinely business-related. A company director spending £300-500/year on business books is unlikely to face any challenge. Spending £5,000/year would attract more scrutiny and you would need to demonstrate that each purchase was for business purposes.
Source: HMRC BIM35660 - Revenue or capital: training costs
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