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

Common allowable expenses

To be allowable, a cost has to be wholly and exclusively for your freelance work. Where something is used both for work and personally, you claim only the fair business share.

The costs freelancers most often claim include:

  • Home office running costs, since many freelancers work from home.
  • Equipment and software such as a laptop, monitor, design tools or editing programs.
  • Professional subscriptions and memberships to a relevant institute or trade body.
  • Business travel to meet clients or attend relevant events.
  • Marketing and your website, including hosting, your domain and advertising.
  • Phone and broadband at the business proportion you actually use for work.
  • Insurance such as public liability and professional indemnity cover.
  • Bank and platform fees, including charges from the marketplaces you find work through.

For the home office you can use the simplified flat rate of £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, or instead claim a fair share of your actual household bills. Our guide to allowable expenses sets out each category in more depth.

Expenses people often miss

Freelancers tend to under claim rather than over claim, often because the costs are small or feel personal. Watch out for these:

  • Software subscriptions paid monthly, which add up to a meaningful sum across the year.
  • Training that updates current skills, such as a course that keeps your existing skills sharp.
  • Platform and payment fees taken automatically before the money reaches you.
  • Professional indemnity insurance, which many freelancers pay but forget to claim.
  • The business share of phone and broadband, rather than ignoring it because the bill is personal.

Equipment is usually claimed through capital allowances. The Annual Investment Allowance gives 100% relief on up to £1,000,000 of qualifying equipment in the year you buy it, so a new laptop is normally relieved in full straight away. If you would value support tailored to freelance work, see our page for accountants for freelancers.

Risky or commonly challenged expenses

Some claims are fine in part but cause problems when stretched too far, and a few are simply not allowed.

  • Everyday clothing is not allowable, even a smart outfit bought only for client meetings. Only protective clothing, a branded uniform or a costume counts.
  • Training for a brand new skill is treated differently from training that updates skills you already use, so be careful claiming a course in an entirely new field.
  • Client entertaining is never allowable, although your own subsistence on a genuine business trip is fine.
  • Mixed use items such as a laptop used for personal projects too must be claimed at a fair business proportion.

If you are ever unsure whether a cost is wholly business, claim only the part that clearly is and keep a short note of your reasoning.

Records to keep

You will not send receipts in with your return, but you must be able to support every figure if HMRC asks. Tidy records also stop you missing genuine claims.

  • Keep invoices and receipts for everything bought for your freelance work.
  • Keep statements from any platforms and payment providers you use.
  • Record the business proportion of any item you also use personally.
  • 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 a simple bookkeeping app or spreadsheet pays off. Our bookkeeping service can keep this in order for you.

A worked example

Worked example

Tom, a freelance writer

Tom earns £30,000 from his freelance writing in the year. He works from home for more than 101 hours a month, so he claims the home office flat rate of £26 a month, which is £312. He buys a new laptop for £1,200, claimed in full through the Annual Investment Allowance. He pays £240 for software subscriptions, £180 for professional indemnity insurance, £150 for his website and domain, and £200 as the business share of his phone and broadband. His allowable expenses total £2,282, so his taxable profit is £30,000 minus £2,282, which is £27,718. Tom pays tax and National Insurance on £27,718 rather than the full £30,000.

Because Tom's costs are well above the £1,000 trading allowance, he claims his actual expenses rather than the allowance, as this reduces his taxable profit by far more.

Common mistakes

These are the slips that most often cost freelancers money or invite questions.

  • Ignoring small recurring costs such as software and platform fees, which add up.
  • Claiming the full cost of a laptop or phone that is also used personally.
  • Trying to claim everyday clothing or client entertaining.
  • Forgetting professional indemnity insurance and relevant memberships.
  • Claiming both the £1,000 trading allowance and actual expenses, when only one is allowed.

Remember the trading allowance choice. If your freelance income is under £1,000 you usually need not report it. Above that, you can deduct either the £1,000 allowance or your actual expenses, whichever is higher, but not both.

What you should do

Set up a separate account for your freelance income and costs, and run everything through it so the records stay clean. Save every receipt, log the business share of mixed use items, and review your figures each quarter.

If you would rather hand the numbers over, our team works with freelancers every day. You can learn more about our support for freelancers or start your quote when you are ready.

In short

As a freelancer you can claim costs that are wholly and exclusively for your work, which reduces the profit you pay tax on.

Frequently asked questions

Can I claim my home office as a freelancer?
Yes. Most freelancers work from home and can claim for it. The simplest route is the flat rate, which is £10 a month for 25 to 50 hours of work at home, £18 a month for 51 to 100 hours, or £26 a month for 101 or more hours. If your real costs are higher, you can instead claim a fair share of your actual household bills such as heating, electricity and broadband. You choose one method, not both.
Can I claim for a laptop and software?
Yes. Software subscriptions used for your work are an everyday allowable expense. A laptop 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 you buy it, so a typical laptop is relieved in full in year one. If you also use the laptop personally, claim only the fair business proportion of its cost.
Is training an allowable expense for freelancers?
Training that updates or refreshes the skills you already use in your freelance work is allowable. Training to learn a completely new skill or move into a different field is treated differently and is often not allowable, because it is seen as creating a new asset rather than maintaining your current work. If in doubt, keep a note of how the course relates to the work you already do.
Can I claim professional indemnity and public liability insurance?
Yes. Public liability insurance and professional indemnity insurance taken out for your freelance work are allowable expenses. Many freelancers pay for this cover but forget to claim it, so make sure the premiums are included in your records. Keep the policy documents and payment receipts so you can support the figure on your tax return if you are ever asked.
Do platform and payment fees count as expenses?
Yes. Fees charged by the marketplaces and platforms you find work through, and the charges taken by payment providers, are allowable business costs. These are easy to miss because they are often deducted automatically before the money reaches your account. Download statements from each platform and provider so you can capture the full amount of fees paid across the year.