UK Freelancer Expenses: What You Can and Can't Claim
Claiming allowable business expenses reduces your taxable profit and cuts your tax bill. But HMRC has strict rules about what qualifies. This guide covers the expenses most UK freelancers and self-employed people can claim — and the ones that commonly trip people up.
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Use our free self-assessment estimator →The golden rule — wholly and exclusively
For most sole traders, an expense is allowable if it was incurred wholly and exclusively for business purposes. That means you must be able to show that the spending was for your trade — not for personal living costs dressed up as business spending.
If an expense has both business and personal elements (like a phone bill), HMRC expects you to split it reasonably and claim only the business proportion. Keep a short note of how you split it so you can explain your method if asked.
The detailed wording of what counts as allowable depends on your structure and accounting basis; always check gov.uk/expenses-if-youre-self-employed and your own records.
Sole trader vs limited company: Sole traders claim allowable expenses against business profits on their Self Assessment return. Limited companies claim eligible costs against company profits in their accounts (with company-specific rules on benefits and directors’ costs). If you use both structures, don’t assume one rule fits all — treat each entity separately.
Office and admin expenses
What you can claim
Typical allowable items include stationery and postage, software subscriptions used for work, professional reference books and trade journals where relevant, and the business share of phone and broadband costs. Cloud storage, accounting tools and specialist apps used mainly for your trade usually fall here too.
What you cannot claim
You cannot claim purely personal items — for example home broadband if you don’t genuinely use it for work, or personal streaming or gaming subscriptions. If something is mixed-use, only claim the business proportion.
Working from home expenses
Simplified expenses (flat rate)
If you work from home at least 25 hours per month, HMRC offers a simplified flat-rate deduction instead of working out extra heating and light for your workspace. You choose the band based on hours worked at home for your business each month:
| Hours worked at home per month | Monthly flat rate |
|---|---|
| 25–50 hours | £10 |
| 51–100 hours | £18 |
| 101 hours or more | £26 |
This method cannot be used together with claiming actual costs for the same expense — it’s one or the other for those household costs covered by the scheme. Confirm details on gov.uk/simplified-expenses-if-youre-self-employed.
Actual costs method
Alternatively you can claim a reasonable proportion of actual household costs — such as mortgage interest or rent, council tax, utilities and broadband — based on the fraction of your home used for business and how much of the time it’s used for work. You need a clear, consistent method and evidence.
This route involves more record-keeping but can be worthwhile if your genuine costs are higher than the flat rate and you have the paperwork to support them.
Limited company directors: charging rent from your company for use of your home or claiming costs through the company follows different rules from sole trader simplified expenses. Get agreement from your accountant on what’s tax-efficient and compliant before charging the company.
Travel and mileage
What you can claim
You can usually claim the cost of journeys that are wholly for business — visiting clients, travelling between different work sites, or to temporary workplaces — including mileage using HMRC’s approved rates or actual costs where appropriate. Public transport and overnight accommodation for genuine business trips can also qualify when wholly for business.
Where you use simplified mileage for a car or van (sole trader simplified expenses), HMRC currently allows 45p per mile for the first 10,000 business miles in the tax year and 25p per mile thereafter — confirm current rates on gov.uk before claiming.
What you cannot claim
Ordinary commuting — travel between your home and a permanent workplace you attend regularly — is generally not allowable. Personal journeys and mixed trips need to be split so only the business element is claimed.
Work out mileage reimbursement using HMRC’s approved rates.
Open the mileage calculator →Equipment and technology
What you can claim
Laptops, monitors, specialist tools and other equipment bought for your trade are often allowable. How you treat larger purchases can depend on whether you use cash basis or traditional accounting — capital allowances and timing rules apply on gov.uk.
What you cannot claim
Equipment bought mainly for personal use, or with only occasional business use, doesn’t meet the wholly-and-exclusively bar (or only part of the cost might qualify). Keep invoices and note business use.
Professional fees and subscriptions
What you can claim
Accountant and bookkeeper fees for your business, professional indemnity and relevant business insurance, subscriptions to approved professional bodies where linked to your trade, and legal fees for contracts or debt recovery for the business are commonly claimed areas.
What you cannot claim
Legal fees for personal matters, fines and penalties, and costs unrelated to your trade are not allowable.
Marketing and advertising
What you can claim
Website hosting and domains for your business, paid ads aimed at winning clients, brochures and business cards, and legitimate promotional spend typically qualify when wholly for the business.
What you cannot claim
Purely personal social media or lifestyle spending isn’t allowable — only costs that genuinely promote your trade.
Training and development
What you can claim
Training that updates existing skills you use in your current trade, and relevant reference materials, may be allowable depending on facts — HMRC publishes guidance on training costs for the self-employed.
What you cannot claim
Training to start a brand-new trade or unrelated qualification is usually treated as capital or non-deductible rather than a revenue expense for your existing business — check gov.uk if you’re unsure.
Business entertainment — a common mistake
Entertaining clients — meals, drinks, events — is generally not an allowable deduction for income tax, even when you discuss work. Many freelancers assume otherwise and later have to reverse claims.
If you’re VAT registered, VAT recovery on entertainment is also heavily restricted. Always separate genuine subsistence on business travel from hospitality or client entertaining.
Subsistence vs entertainment: Reasonable meal costs when you’re travelling on business can differ from taking a client to lunch. Don’t mix them up on your records — HMRC treats them differently.
Pension contributions
Sole traders may get tax relief on personal pension contributions subject to annual allowance and relevant earnings rules — relief is handled through your Self Assessment or via relief at source depending on the scheme.
Limited company directors can sometimes make employer pension contributions through the company; those can be very tax-efficient but depend on scheme rules and wholly-and-exclusively tests for the company. Take advice before committing large amounts.
Record keeping — what HMRC requires
You must keep evidence that supports every expense you claim — receipts, invoices, bank statements and mileage logs as appropriate. HMRC can ask for records going back several years if they open an enquiry.
For mileage, note dates, destinations and purpose of trips. Digital scans are fine provided they’re complete and readable. If you’re VAT registered, VAT record retention periods are longer — follow HMRC’s guidance for your situation.
Frequently asked questions
Can I claim my home broadband as a business expense?
Yes, but only the business proportion. If you use broadband 60% for work, you can claim 60% of the cost. Keep a record of how you calculated the proportion.
Can I claim my mobile phone as a business expense?
Yes, the business proportion. If you have one phone for personal and business use, estimate the business percentage and claim that proportion. A dedicated business phone used exclusively for work is fully deductible.
Can I claim clothing as a business expense?
Only if it is a uniform or protective clothing that cannot be worn outside work. A suit for client meetings is not allowable. Branded workwear with your company logo is generally allowable.
Can I claim my car as a business expense?
As a sole trader using simplified expenses, you claim HMRC mileage rates rather than actual car costs — 45p per mile for the first 10,000 business miles, 25p thereafter.
How do I know if an expense is allowable?
Apply the wholly and exclusively test — was the expense incurred solely for the purposes of your business? If yes, it is likely allowable. If it has any personal element, only the business proportion is deductible.
This guide is for general information only and does not constitute tax advice. Rules change and depend on your structure and circumstances. Always verify at gov.uk or with a qualified accountant before claiming expenses on your return.