What expenses can freelancers claim in the UK?

Knowing what you can deduct from your taxable income can save you a significant amount of money, and ensure you're complying with HMRC regulations. In this guide, we'll break down the various expenses you can claim as a freelancer in the UK, making it easier for you to manage your finances and reduce your tax bill.

1. Office costs

Whether you work from a home office or rent an external workspace, the costs associated with running your office are deductible. This includes:

• Rent: If you rent office space, the cost is fully claimable.

• Utility bills: Electricity, heating, and water bills for your office space.

• Office supplies: Pens, paper, printer ink, and other stationery.

If you work from home, you can also claim a portion of your home expenses proportional to the amount of space used for work. This includes:

• Mortgage interest or rent: You can claim a proportion of your mortgage interest or rent based on the size of your workspace compared to your entire home.

• Council tax: A proportionate amount of your council tax can be claimed.

• Home insurance: You can claim a portion of your home insurance related to the office space.

2. Travel expenses

Freelancers often need to travel for work, and many travel-related expenses are tax-deductible:

• Mileage: If you use your personal car for business purposes, you can claim a standard mileage rate, which covers fuel, maintenance, and depreciation.

• Public transport: Costs for trains, buses, and taxis used for business purposes.

• Parking: Parking fees while you're on business trips.

However, commuting to your regular place of work is not deductible, so be sure to distinguish between business and personal travel.

3. Equipment and tools

Investing in equipment and tools necessary for your freelance work is fully claimable. This includes:

• Computers and laptops: The cost of purchasing or leasing computers, laptops, and related hardware.

• Software: Costs for software and subscriptions relevant to your work.

• Tools: Any specialised tools required for your trade or profession.

For high-cost items like computers, you might need to spread the cost over several years through capital allowances.

4. Professional services

Freelancers often require professional services to support their business:

• Accounting fees: Costs for hiring an accountant or bookkeeper.

• Legal fees: Legal advice related to your business, such as contracts and intellectual property.

5. Training and development

Keeping your skills up-to-date is crucial, and the cost of training related to your profession is claimable:

• Courses and workshops: Fees for training courses and workshops directly related to your freelance work.

• Books and journals: Relevant literature and industry journals.

6. Marketing and advertising

Promoting your freelance business involves expenses that can be claimed:

• Website costs: Hosting, domain registration, and website design.

• Advertising: Costs for online and offline advertising, including social media promotions and print ads.

7. Phone and internet costs

If you use your phone and internet for business purposes, you can claim a proportion of these costs:

• Phone bills: A percentage of your phone bill that relates to business calls.

• Internet costs: A proportionate amount of your home internet bill.

8. Bank charges and interest

Certain financial costs are also claimable:

• Bank fees: Charges for maintaining a business bank account.

• Interest on business loans: Interest payments on loans taken out for business purposes.

Simplify your self assessment

Navigating these expenses can be daunting, but you don’t have to do it alone. At the self assessment helper, we make filing your self assessment easy and straightforward. For just £9.99, our simple questionnaire will provide you with a personalised, step-by-step guide tailored to your unique tax situation. Let us help you ensure that you claim all the expenses you're entitled to, and streamline your self-assessment process.

Understanding and claiming the right expenses can significantly reduce your tax burden and ensure compliance with HMRC regulations. By keeping accurate records and knowing what you can claim, you can maximize your tax savings and focus on what you do best – your freelance work.

For more tips and guidance on managing your finances as a freelancer, follow our blog and stay updated with the latest information. Happy claiming!

Simplifying self assessment for freelancers