Can I Claim Security Services as a Business Expense?
Yes - security costs for protecting your business are fully deductible.
What HMRC Says
Security measures for business premises and assets are allowable expenses.
When You Can Claim
- Alarm systems
- CCTV installation and monitoring
- Security guards
- Cyber security software
When You Cannot Claim
- Home security (unless business proportion)
- Personal security measures
Understanding Security Services Expenses
Security costs for protecting your business premises, assets, data, and people are fully deductible against Corporation Tax. HMRC recognises that businesses need to protect themselves from theft, damage, and cyber threats, and treats these costs as ordinary business expenditure. The deductibility applies to both physical security (alarms, CCTV, guards, locks) and cyber security (software, monitoring, penetration testing, compliance).
Physical security costs are straightforward. Alarm system installation and monitoring, CCTV cameras and recording equipment, access control systems (key fobs, intercoms), security lighting, safes and secure storage, locks and physical barriers, security guard services, and cash-in-transit services are all deductible. The installation of security equipment is generally treated as a capital expense eligible for Annual Investment Allowance (100% deduction in year one), while ongoing monitoring and service contracts are revenue expenses deducted as incurred.
Cyber security has become an increasingly significant expense category. Antivirus and endpoint protection software, firewall subscriptions, VPN services for remote workers, password management tools (1Password, Bitwarden), security monitoring services, penetration testing, vulnerability assessments, data backup services, and SSL certificates are all deductible business expenses. For companies handling sensitive data, compliance-related security costs (GDPR audits, Cyber Essentials certification, ISO 27001) are also deductible.
For home-based businesses, security costs follow the same apportionment rules as other home office expenses. A home alarm system that protects the entire house is partially business if you have a home office. However, specific security measures for business equipment or data (like a safe for business documents or cyber security software on a work laptop) are fully deductible because they relate wholly to business use.
VAT on security services and equipment is reclaimable for VAT-registered businesses. Security companies charge VAT at 20%, and security equipment purchases include VAT. Monitoring subscription services also include VAT. Ensure your security provider issues proper VAT invoices.
Real-World Examples
Office alarm and CCTV system
A retail shop installs an alarm system (£1,200) and four CCTV cameras (£800). The £2,000 installation qualifies for 100% AIA capital allowance. The monthly monitoring contract of £35 per month (£420/year) is a deductible revenue expense. VAT on both the installation and monitoring is reclaimable.
Cyber security suite for a tech company
A software company pays £150/month for CrowdStrike endpoint protection, £40/month for 1Password business, £200 for an annual penetration test, and £300 for Cyber Essentials certification. The total annual cost of £2,780 is fully deductible as operating expenses.
Security guards for an event
A company hosting a product launch event hires two SIA-licensed security guards at £15 per hour for 8 hours, costing £240. This is deductible as an event security cost. For regular premises security, ongoing guard services are deductible as premises costs.
Home-based business with specific security
A director stores high-value business equipment at home and buys a £400 safe specifically for business documents and a £150 lockable filing cabinet. Both are fully deductible as business security equipment because they are used exclusively for business purposes, regardless of being located at home.
Common Mistakes to Avoid
- Trying to claim the full cost of a home security system through the company when it protects the entire house — only the business proportion is deductible unless the system specifically protects business assets
- Treating CCTV and alarm installation as revenue expenditure rather than capital — equipment installation should go through capital allowances (AIA) while monitoring contracts are revenue expenses
- Overlooking cyber security costs like password managers, VPN subscriptions, and backup services as deductible business expenses — these are legitimate and increasingly important costs
- Not claiming Cyber Essentials or ISO 27001 certification costs, which are deductible professional fees that also help win contracts requiring certified security standards
Frequently Asked Questions
Can my company claim the cost of a security alarm?
Yes, both the installation and ongoing monitoring costs for a business premises alarm are deductible. Installation costs qualify for capital allowances (100% AIA), while monthly monitoring fees are deductible as a revenue expense. The alarm must protect business premises.
Is cyber security software a business expense?
Yes, all cyber security software and services used to protect your business are deductible. This includes antivirus, firewalls, VPNs, password managers, backup services, and security monitoring. These are treated as software subscriptions or IT expenses.
Can I claim security guard costs through my company?
Yes, hiring security guards for business premises or events is a deductible business expense. This includes regular premises security contracts and one-off event security. Ensure the security company provides proper invoices.
Is Cyber Essentials certification tax deductible?
Yes, the cost of Cyber Essentials certification (typically £300-500) and the associated assessment are deductible as professional compliance costs. ISO 27001 certification costs are also deductible. These are treated as professional fees or compliance expenditure.
Can I claim a home safe through my company?
Yes, if the safe is used to store business documents, cash, or equipment. A safe purchased specifically for business use is fully deductible, even if located at your home. It qualifies as business equipment under capital allowances.
Source: HMRC Business Income Manual BIM46900 (Repairs and maintenance) and BIM35000 (General business expenses) and Capital Allowances Manual CA20000 (Plant and machinery)
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