Written by the TaxTune Editorial Team·Reviewed by our qualified accountants·Updated June 2026

Common allowable expenses

The test is the same as for any business. A cost must be wholly and exclusively for your consulting work to be allowable, and anything with mixed use is claimed at a fair business proportion.

The costs consultants most commonly claim include:

  • Travel and subsistence on genuine client work, including journeys to client sites and reasonable meals while away.
  • Home office running costs for the time you work between or before client engagements.
  • A serviced office or co working space, where you rent space to work from.
  • Equipment and software such as a laptop, presentation tools and project software.
  • Professional indemnity insurance, which most consultants need and clients often require.
  • Subscriptions to a relevant professional body or institute.
  • Marketing, including your website, profile and advertising.
  • Phone and broadband at the business proportion you use for work.

For travel you can use the mileage method, claiming 45p per business mile for the first 10,000 miles in the tax year and 25p per mile after that, or claim a business share of actual running costs plus capital allowances, but not both for the same vehicle. Our allowable expenses guide covers each area in more detail.

Expenses people often miss

Consultants often forget costs that arise around client work rather than the work itself. Common misses include:

  • Subsistence on a genuine business trip, such as a meal while working away from home for the day.
  • The home office for time spent on proposals and admin between projects, using the flat rate of £10, £18 or £26 a month depending on hours.
  • A serviced office or co working desk rented to give you a professional base.
  • Professional indemnity insurance, which is allowable and often overlooked.
  • Training that updates current skills to keep your expertise current.

Equipment is usually claimed through capital allowances, and the Annual Investment Allowance gives 100% relief on up to £1,000,000 of qualifying equipment in the year of purchase. Good record keeping makes all of this far simpler, and our bookkeeping service can help. Forward thinking on costs and timing is also where tax planning adds real value.

Risky or commonly challenged expenses

Two areas trip consultants up most often: entertaining and travel that is really commuting.

  • The entertaining trap. Client entertaining is never allowable, however valuable the relationship. The line can feel blurry: a meal you buy to host or impress a client is entertaining and cannot be claimed, while a meal you buy for yourself on a genuine business trip is subsistence and can be claimed.
  • Ordinary commuting. Travel to a regular place of work is commuting and is not allowable, even if that place is a client site you attend day after day over a long engagement.
  • Everyday clothing is not allowable, even a suit worn only for client meetings. Only protective clothing, a branded uniform or a costume counts.
  • Mixed use items such as a phone or laptop must be claimed at a fair business proportion.

When a cost sits close to the line, claim only the clearly business part and keep a note of your reasoning.

Records to keep

You do not send receipts to HMRC, but you must be able to support every figure on your return. With travel heavy work, records matter even more.

  • Keep receipts for travel, subsistence, equipment and insurance.
  • Keep a mileage log showing the date, journey and business miles if you use the mileage method.
  • Note the business proportion of any mixed use item.
  • Keep your records for at least 5 years after the 31 January filing deadline.

Under Making Tax Digital you will need to keep digital records, so capturing receipts as you go is the easiest approach.

A worked example

Worked example

Sam, a management consultant

Sam has consulting income of £60,000 for the year and travels to several client sites. He drives 8,000 business miles, claimed at 45p a mile, which is £3,600. He spends £700 on subsistence on genuine business trips, claims the home office flat rate of £312 for the year, pays £900 for professional indemnity insurance, £1,500 for equipment through the Annual Investment Allowance, and £300 as the business share of phone and broadband. His allowable expenses total £7,312, so his taxable profit is £60,000 minus £7,312, which is £52,688. Sam pays tax and National Insurance on £52,688 rather than the full £60,000.

Sam is careful to claim only his own subsistence on business trips. The dinner he bought to host a prospective client is entertaining, so he leaves it out, as client entertaining is never allowable.

Common mistakes

The most common errors for consultants tend to cluster around travel and hospitality.

  • Claiming client entertaining, which is never allowed, instead of only your own subsistence.
  • Claiming travel to a regular client site, which is treated as ordinary commuting.
  • Claiming the full cost of a phone or laptop used personally too.
  • Forgetting professional indemnity insurance, the home office and a serviced office.
  • Keeping no mileage log, then struggling to support the travel figure later.

If your consulting income is under £1,000 you usually need not report it. Above that you can deduct either the £1,000 trading allowance or your actual expenses, whichever is higher, but not both, and most consultants will be far better off claiming actual costs.

What you should do

Run all your income and costs through a separate business account, keep a mileage log from day one, and capture receipts for travel and subsistence as you go. Each quarter, review the figures so nothing is missed and your records stay up to date.

If you would like the numbers handled for you, our team works with consultants across the UK. You can read more about Self Assessment or start your quote whenever it suits you.

In short

As a consultant you can claim costs that are wholly and exclusively for your client work, which reduces the profit you are taxed on.

Frequently asked questions

Can I claim travel and meals when visiting clients?
You can claim travel for genuine business journeys and reasonable subsistence, such as a meal, while you are working away from your normal base. You cannot claim travel to a regular place of work, as that counts as ordinary commuting, even when the regular place is a client site you attend over a long engagement. Keep a mileage log and meal receipts so you can support each claim if asked.
Why can I claim my own meal but not a client lunch?
Your own meal on a genuine business trip is subsistence, which is allowable. A meal you buy to host or impress a client is entertaining, and client entertaining is never allowable, however useful the relationship. This is the entertaining trap many consultants fall into. The simplest rule is that you can claim for feeding yourself while working away, but not for treating a client.
Can I claim for a serviced office or co working space?
Yes. If you rent a serviced office or a desk in a co working space to use as a professional base for your consulting, the cost is an allowable business expense. You can claim this alongside a home office claim for the time you genuinely work from home, as long as each claim reflects real business use. Keep the rental invoices and agreements as your supporting records.
Do I need professional indemnity insurance and can I claim it?
Many consulting clients require professional indemnity insurance before they will engage you, and the premiums are an allowable expense. The same applies to public liability cover where you carry it. It is a cost that is easy to overlook because it may be paid annually, so make sure it is recorded. Keep the policy documents and payment receipts to support the figure on your return.
How do I work out my home office claim as a consultant?
You can use the simplified flat rate based on the hours you work at home each month, which is £10 a month for 25 to 50 hours, £18 a month for 51 to 100 hours, or £26 a month for 101 or more hours. If your actual costs are higher, you can instead claim a fair share of your real household bills. Pick one method, keep a note of your hours or your calculation, and stay consistent.
Can I claim training as a consultant?
Training that updates or refreshes the skills you already use in your consulting is allowable. Training to acquire a brand new skill or move into a different field is treated differently and is often not allowable, because it is seen as creating something new rather than maintaining your existing expertise. Keep a record of how each course relates to the consulting work you already carry out.