What Expenses Are Allowable? The Practical List
Knowing what’s deductible is the heart of freelancer tax. HMRC’s test: expenses must be “wholly and exclusively” for business.
Commonly allowable
- Software, subscriptions, hosting.
- Office supplies, stationery.
- Professional fees (accountant, solicitor).
- Insurance premiums.
- Marketing, ads, website costs.
- Travel to client sites.
Mixed-use
- Phone bills: claim business proportion.
- Home internet: claim % used for work.
- Vehicle: claim mileage or apportion costs.
Not allowable
- Personal clothing (unless protective).
- Client entertainment.
- Fines and penalties.
Example
You pay £600 for a laptop used 80% for work. Claim £480 as an expense.
Checklist
- Keep receipts.
- Add notes for mixed-use.
- Review categories quarterly.
- Keep digital backups.