Self-employed expenses: what you can claim in 2026/27

Every pound of legitimate expense you claim knocks a pound off your taxable profit. And because you pay Income Tax and Class 4 NI on that profit, each £100 of expenses you forget to claim costs you around £29 in extra tax at the basic rate. So knowing what counts as an allowable expense is one of the easiest ways to keep more of what you earn. Here's what you can claim as a freelancer, what you can't, and how to handle the tricky mixed-use costs.

The one rule that decides everything

HMRC allows a cost if it's spent "wholly and exclusively" for your business. That phrase does a lot of work. A laptop you only use for client projects is fully allowable. A phone you use for both work calls and chatting to friends is only partly allowable, so you claim the business share. And a suit you'd wear anywhere isn't allowable at all, even if you bought it for client meetings, because it has an everyday personal use.

Get comfortable with that test and most decisions answer themselves. If a cost only exists because of your business, it's usually claimable. If you'd have spent the money anyway, it usually isn't.

What you can claim

These are the categories most freelancers use. You won't need all of them, but it's worth checking each one against your own spending.

Equipment and technology

Computers, monitors, phones, printers and cameras used for work. Software subscriptions, web hosting, domain names and cloud storage. Small items go straight through as an expense. Larger kit is usually claimed through the annual investment allowance, which lets you deduct the full cost of most equipment in the year you buy it.

Travel

Journeys to client sites, temporary workplaces and business meetings. If you use your own car, you can claim a flat mileage rate: 45p a mile for the first 10,000 business miles in the year, then 25p a mile after that. Train fares, bus fares, parking and tolls are all claimable. So is a hotel and reasonable meals when a job keeps you away overnight. What you can't claim is ordinary commuting to a place you treat as your regular base.

Home office costs

Most freelancers work from home at least part of the time, and you can claim a share of the running costs. There are two methods, covered in detail below.

Professional costs

Accountancy and bookkeeping fees, legal fees for business matters, professional indemnity and public liability insurance, and membership of a professional body linked to your work. Training that keeps your existing skills current is allowable. Training to learn a brand new trade usually isn't, because HMRC treats that as setting up a new capability rather than running the current business.

Marketing and admin

Website design and hosting, business cards, advertising, and fees for networking events. Everyday running costs count too: stationery, postage, printing, and the bank charges on a dedicated business account.

Stock and materials

If you make or sell physical goods, the cost of raw materials and stock for resale is allowable. So are the direct costs of delivering your service, like couriers or subcontractors you bring in for a job.

Home office: the two methods

You can work out your home office claim in one of two ways, and you're free to pick whichever gives the bigger deduction.

The simplified flat rate is based on how many hours a month you work from home. It's £10 a month if you work 25 to 50 hours, £18 a month for 51 to 100 hours, and £26 a month for 101 hours or more. No receipts, no calculations, just the flat figure. It's quick, but it usually gives a smaller claim.

The actual cost method works out the business proportion of your real household bills: rent or mortgage interest, council tax, electricity, gas, water and broadband. If you use one room out of five mainly for work, you might claim a fifth of those costs, adjusted for how much of the time the room is used for business. It takes more effort but often produces a larger deduction, especially if you work from home full-time.

What you can't claim

Some costs feel business-related but HMRC won't allow them:

• Everyday clothing, even if you only wear it for work. Genuine protective gear and branded uniforms are fine.
• Ordinary commuting between home and a regular workplace.
• Client entertainment, such as taking a customer for lunch.
• Fines and penalties, including parking tickets picked up on business trips.
• Your own meals during a normal working day, unless you're travelling and staying away overnight.
• The personal share of any cost you use for both business and private life.

The trading allowance alternative

If your total expenses for the year come to less than £1,000, there's a simpler option. Instead of adding up receipts, you can claim the £1,000 trading allowance and deduct that from your income. You use one or the other, not both. For someone with very low costs, the trading allowance is the better deal and saves you the record-keeping. Anyone spending more than £1,000 on genuine business costs should claim actual expenses instead.

Keep the records to back it up

You don't send receipts to HMRC with your return, but you must keep them for at least five years after the 31 January filing deadline. If HMRC opens an enquiry, you'll need to produce evidence for what you claimed. A separate business bank account and a simple habit of photographing receipts as you go makes this painless. Miss the records and HMRC can disallow the expense and estimate your tax, usually not in your favour.

See the effect on your bill

Expenses aren't just admin, they directly cut every tax you pay. Lower profit means less Income Tax, less Class 4 NI, and smaller payments on account. Put your income and expenses into our self-employed tax calculator and watch the total tax bill drop as your claimable costs rise. And if you're wondering why that January bill is bigger than expected, the payment on account guide explains where the extra comes from.

HMRC's full list of allowable expenses is at gov.uk.