Running an Affiliate Program

[Saddy]

Bit of a newbie question on tax I think, but everywhere I look I'm only getting answers as if I was receiving affiliate payments.

I am interested in setting up an affiliate program as part of my e-commerce website to help with promotion and wondered, are affiliate payments tax deductible and if so, how would I best categorise payments TO affiliates in my books?

My guess would be Advertising and Promotion, but I haven't found any clear answers online.

Thanks very much in advance for any help..

 

[Scalloway]

If affiliate payments are wholly and necessarily incurred for business purposes then they are tax deductible.

 

[Saddy]

If affiliate payments are wholly and necessarily incurred for business purposes then they are tax deductible.

Thanks for the help.