Every allowable expense you claim reduces your taxable profit, and therefore your tax bill. The test HMRC applies is simple: the cost must be incurred wholly and exclusively for your business. Here's the full 2026/27 picture for UK freelancers.
The golden rule
If a cost is purely for your business, it's allowable. If it has a personal element, you can usually claim the business proportion (your phone bill is the classic example). If it's purely personal, it isn't allowable — even if it feels work-related.
Office and admin costs
- Stationery, printing and postage
- Business phone and internet (business proportion)
- Software, apps and subscriptions used for work
- Bank charges on a business account
AI expense tracking captures these automatically when you snap the receipt.
Travel
- Train, bus, taxi, parking and tolls for business journeys
- Business mileage at 45p/mile for the first 10,000 miles, then 25p
- Accommodation and reasonable meals when working away overnight
Commuting to a regular workplace is not allowable.
Working from home
You can claim either:
- The £6/week flat rate (£312/year) with no records needed, or
- A calculated proportion of actual costs — rent, mortgage interest, council tax, utilities — based on rooms used and hours worked.
Clothing
- Uniforms and protective gear required for the job
- Costumes for performers
Everyday clothing is never allowable, even if you only wear it for work.
Marketing and advertising
- Website hosting, domain and design
- Social media and search advertising
- Business cards, flyers and sponsorships
Professional services
- Accountant and bookkeeper fees
- Legal advice relating to the business
- Training that updates skills for your existing trade
Subcontractors and staff
- Payments to subcontractors
- Salaries (handled through payroll)
What you can't claim
- Client entertainment and gifts over £50
- Fines and penalties (including parking fines)
- Personal expenses and personal tax
- Capital purchases like equipment — these go through capital allowances instead
Capital allowances
Larger purchases such as a laptop or camera aren't "expenses" in the normal sense. Instead you claim capital allowances — most small businesses use the Annual Investment Allowance to deduct the full cost in the year of purchase.
The £1,000 trading allowance
If your total self-employment income is under £1,000 a year, you may not need to register or claim expenses at all. Above that, compare claiming the £1,000 flat trading allowance against your actual expenses, and use whichever is higher.
How to never miss a deduction
Lost receipts can make accurate bookkeeping harder. Build the habit of capturing each cost when it happens. With AI bookkeeping, a receipt photo can produce suggested details, VAT and a category for you to review. Learn more in our guide on how to track business expenses.
Frequently asked questions
What can a freelancer claim? Any cost wholly and exclusively for business — office, travel, software, professional fees, advertising and use of home.
Can I claim for working from home? Yes — £6/week flat rate or a calculated share of actual costs.
Can I claim pre-trading costs? Yes, generally those incurred up to seven years before trading that would have been allowable.
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