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
The reason freelancers overpay tax is rarely the rules — it's lost receipts. Build the habit of capturing each cost the moment it happens. With AI bookkeeping, a photo is all it takes, and the software files it under the right category with the VAT extracted. 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.
Claim every expense automatically — try LedgerlyPro free for 30 days.
