What Expenses Can Freelancers Claim in the UK?

TL;DR: UK freelancers can claim business costs that are "wholly and exclusively" for work—think software, equipment, travel for client work, part of home office costs, and professional fees. Keep receipts, separate business from personal, and log everything monthly to avoid missing relief.

Contents

1. What counts as an allowable expense?
2. Common expense categories (with examples)
3. Home office: simplified vs actual cost method
4. What you can't claim
5. Real-world examples by profession
6. How to record expenses (monthly checklist)
7. FAQs

What counts as an allowable expense?

An expense is allowable when it's wholly and exclusively for your business. If there's a mix of personal and business use (e.g., your phone), you can usually claim a fair business proportion. Keep notes on how you calculated any percentage split.

Tip: Use dedicated categories and the same naming every time so year-end is painless. Keepr's Expenses feature helps you categorise consistently and attach receipts in seconds.

Common expense categories (with examples)

1) Equipment & tools

• Laptop, monitor, keyboard, camera gear, specialist tools.
• Low-cost items are usually expensed; higher-value kit may use capital allowances (e.g., Annual Investment Allowance).

2) Software & subscriptions

• Design/dev tools, bookkeeping (like Keepr), cloud storage, password managers.
• Only claim the business portion if there's mixed use.

3) Travel & subsistence

• Public transport, mileage for client/site visits, parking, tolls.
• Reasonable meals when travelling for work (not regular lunches at your usual base).
• Accommodation for overnight business trips.

4) Phone & internet

• Business mobile plan or a fair share of a personal plan used for work.
• Home broadband: claim a reasonable percentage for business use.

5) Professional fees & training

• Accountant/bookkeeper, professional indemnity insurance, industry membership fees.
• Training that maintains or refreshes existing skills (new skills training can be restricted—check guidance).

6) Marketing & website

• Ads, domain/hosting, website themes/plugins, printing business cards.
• Stock images, fonts, brand assets.

7) Office costs & supplies

• Stationery, printer ink, postage, small furnishings for your workspace.

8) Banking & payment fees

• Bank charges, payment processor fees (e.g., Stripe), currency conversion fees.

Home office: simplified vs actual cost method

If you work from home, you can claim a portion of costs. Two common approaches:

1. Simplified method: A flat rate based on hours worked at home each month (quick and low admin).
2. Actual cost method: Claim a fair percentage of bills (electricity, heating, rent, council tax where applicable, service charges, internet). Keep a calculation note and be consistent.

Good practice: Pick a method and stick with it for the tax year. Keepr lets you tag these costs under Home office and store your working for audit-readiness.

What you can't claim

• Client entertainment (meals, drinks, events) is not allowable.
• Everyday clothing (unless it's protective or a uniform).
• Fines/penalties (e.g., parking tickets).
• Personal expenses or the personal portion of mixed expenses.
• Training to enter a new trade or profession (as opposed to updating skills within your existing one).

Real-world examples by profession

Freelance designer

• Allowable: Adobe/Sketch, fonts, stock images, iPad + pencil (if used for work), monitor calibration tool, domain/hosting.
• Not allowable: Coffee with a client classed as "entertainment".

Freelance developer

• Allowable: IDE licences, code hosting, testing devices, password managers, SaaS tooling, coworking day passes for meetings.
• Not allowable: A new gaming PC bought primarily for personal use.

Freelance photographer

• Allowable: Camera bodies/lenses (capital allowances may apply), insurance, location travel, props consumed in shoots.
• Not allowable: Fashion clothing for shoots that's also worn personally.

How to record expenses (monthly checklist)

1. Snap receipts as you go (email PDFs to a receipts inbox or attach images).
2. Categorise using consistent names (match your tax return sections).
3. Split mixed costs with a percentage and keep a brief note of the calculation.
4. Reconcile against bank/credit card statements.
5. Review a simple Profit & Loss to spot trends and missing claims.

FAQs

Can I claim a portion of rent, mortgage interest, and utilities?

Yes—if you work from home, claim a fair share of rent and utilities. Mortgage interest is treated differently to capital repayments; when in doubt, use the simplified method or speak to an accountant.

How do I claim mileage?

Keep a mileage log for business trips and claim the approved rate (45p per mile for the first 10,000 miles, then 25p per mile after that). Don't claim both mileage and fuel for the same journey.

Do I need to keep physical receipts?

Digital copies are fine if they're legible and include key details (supplier, date, total, VAT if applicable). Keepr stores these with each expense.