Money Matters

Allowable expenses for creative freelancers: What can you claim?

Software, studio hire, a new laptop, or coffee while you work: which costs count as business expenses? Here’s how to separate claimable costs from personal spending and keep useful records.

Published 3 November, 20268 min read Share

Key takeaways

• Allowable expenses reduce taxable profit; they don’t make a purchase free. 
• The purpose of a purchase matters more than which account you pay from. 
• For costs with separable business and personal use, claim only the business share. 
• Everyday clothing, ordinary meals and client entertaining are generally not allowable. 
• Keep evidence and check uncertain costs before including them in your claim. 

A design subscription feels straightforward. A laptop you also use at home is less clear. Then there’s the coffee you bought while editing, the outfit for a client presentation and the course that could help you win different work. 

Creative freelancing doesn’t always have a neat boundary between working life and personal life. That can make expenses confusing—and it’s one of the things we discuss in this wide-ranging article, as follows:

The basic test for expenses

For UK sole traders, an allowable expense is a qualifying business cost you deduct when calculating taxable profit. This article covers sole traders; limited companies have separate rules.  

The basic test is that a cost is incurred “wholly and exclusively” for your business. In plain English, it needs to be for your business rather than for you.  

• Where you can identify a separate business share, such as part of a phone bill, you can claim that share.  

• Where one purchase serves both purposes at once, such as an outfit you’d also wear socially, you generally can’t claim any of it. 

For the wider categories and claiming process, read our guide to allowable expenses for the self-employed. Here, we focus on the everyday decisions creative freelancers face: shared equipment, software, training and spending while you work.  

Understand what claiming an expense means 

Claiming an expense doesn’t mean HMRC refunds the purchase price. 

Suppose you receive £30,000 in business income and have £5,000 of allowable expenses. Your profit before other tax adjustments is £25,000.  

If all of that £5,000 would otherwise have been taxed at the basic rate of Income Tax (20%) and the main rate of Class 4 National Insurance (6%), claiming it reduces your bill by about £1,300. 

You’ve still spent £5,000, so those purchases cost you about £3,700 overall. Your own figures will depend on your circumstances.

 Tax relief reduces the cost without removing it, so a purchase needs to be worthwhile and affordable in its own right. 

Also check whether you’re using the £1,000 trading allowance. You cannot deduct actual expenses as well as claiming that allowance against the same income. 

Check common creative business costs 

Start with what you bought and how it supports your work. These categories give you a useful starting point, rather than automatic approval of every purchase within them. 

Cost	What to check
Design, writing or editing software	Regular licence payments for business software can qualify. Exclude personal use.
Fonts, stock images, music licences and plug-ins	Licences for assets you use in client or business work can qualify. Exclude personal projects.
Printing, stationery and postage	Keep evidence of their business purpose.
Laptop, camera or other equipment	Treatment depends on your accounting method and business use.
Studio or workspace rent	Business premises costs can qualify; exclude private use.
Portfolio website and advertising	Business website and advertising costs can qualify.
Professional membership or journals	Check that they relate to your business.
Training	Must relate to your current business, including new skills it needs.

These categories follow HMRC’s guidance on office costs, marketing, subscriptions, insurance, financial costs and training.  

Since the 2024–25 tax year, the cash basis has been the default accounting method for sole traders unless you opt out. 

HMRC’s office and equipment guidance distinguishes between cash basis and traditional accounting. Under cash basis, business equipment such as computers is generally claimed as an expense, although cars are treated differently.  

Under traditional accounting, equipment you keep for the business generally falls under capital allowances instead.  

For training, the rules extend beyond refreshing existing skills. Training can also support changes in your industry or develop skills needed to run your business, including administration. Courses to start a new business or enter an unrelated business area do not qualify under this guidance.  

Separate business and personal use 

Some purchases serve both purposes. Your phone might handle client calls and family messages. A laptop might hold paid projects and personal photos. 

Where business use can be separated, claim that share and keep a reasonable explanation of how you calculated it. 

For example, if an annual phone bill is £600 and a supportable calculation shows 40% business use, the business portion is £240. The percentage is illustrative, not a standard HMRC allowance. 

Working from home needs a calculation too. HMRC’s guidance allows a reasonable division of qualifying household costs, using factors such as rooms and time spent working. You may alternatively be eligible for simplified expenses.  

You cannot assume every mixed-purpose purchase can be divided. Ordinary clothing, for example, doesn’t become partly deductible because you wear it to client meetings, as it still serves a personal purpose.  

Paying from a business account also doesn’t settle the question. It records where the money came from, rather than proving the cost qualifies. 

Watch the costs that look claimable 

Don’t let the following items catch you out!

Coffee and food while you work 

In Money Diary of a sportswear entrepreneur, the owner takes her laptop to a café to work through emails and admin, recording spending on drinks and cakes.  

It’s a recognisable way to get work done. But buying refreshments while working doesn’t, by itself, make them allowable. 

Ordinary food and drink are generally personal living costs. Different rules can apply to qualifying business travel, including necessary overnight trips and certain occasional journeys. Check HMRC’s subsistence guidance before claiming.  

Client lunches and entertainment 

Discussing a project over lunch doesn’t usually make the hospitality deductible. HMRC generally excludes client entertaining, including food and drink provided during a work meeting. 

Costs of promoting your business, such as advertising or your website, are treated differently. 

Clothes for meetings or events 

Everyday clothing is not allowable, even when you buy it for work. That includes ordinary suits, shirts, dresses and shoes. 

Qualifying protective clothing, uniforms and costumes for actors or entertainers can be different. A smart outfit for a pitch isn’t automatically a uniform.  

Travel 

Genuine business travel may qualify, but private journeys and ordinary travel between home and work do not. 

Record the destination and purpose. If you regularly work at a client site or combine a trip with a holiday, check the treatment rather than assuming the whole journey qualifies. 

HMRC’s travel guide sets out the main categories and exclusions.  

Build a record you can explain 

Save the receipt or invoice as soon as you can, then add any context that won’t be obvious later: the project, business purpose and calculation of private use. 

A bank transaction may show you spent £85, but it won’t necessarily explain what you bought or why. 

At the Small and Medium-Sized Business (SMB) Advisory Board convened by Sage in September 2026, one sole trader described categorising transactions for Making Tax Digital as “a complete and utter minefield.”

That experience highlights a useful distinction. Choosing a category in your records and deciding whether a cost is allowable are separate questions. If you’re unsure about either, keep the receipt and a note explaining the purchase so you can check it. 

If you use Making Tax Digital for Income Tax, your categorised records also feed your quarterly updates, so keeping them current saves a scramble later. 

A simple routine is enough to get started: 

1. Capture the receipt or invoice. 

2. Record the date, supplier and amount. 

3. Add the business purpose where needed. 

4. Separate private spending or mixed use. 

5. Flag uncertain items for checking. 

Keeping the evidence doesn’t necessarily mean building a pile of paper receipts. HMRC accepts records kept on paper or digitally, so a photo or scan of a receipt can do the job. 

HMRC requires accurate records and proof of expenses, although you don’t normally send the evidence with your tax return. Keep self-employed records for at least five years after the relevant 31 January submission deadline, subject to special rules for very late returns.  

If you’re unsure, retain the evidence and ask your accountant or HMRC a specific question. “Can I claim this course, which teaches a new tool used in my existing design business?” is more useful than “Can freelancers claim courses?” 

Final thoughts

Start with your last month of spending. Identify clear business costs, separate personal purchases and make a short list of items to check. That gives you a repeatable process for the next month too. 

FAQs about freelancer expenses 

Can I claim a laptop I also use personally? 

You may be able to claim the business share. Keep a reasonable calculation of usage. Under the cash basis, which applies to most sole traders, you’d usually claim that share as an expense. Under traditional accounting, it goes through capital allowances instead.  

Can I claim coffee when I work in a café? 

Working there doesn’t automatically make refreshments deductible. Ordinary food and drink are generally personal costs. Qualifying business travel can be different, so check the circumstances.  

Can I claim a course that teaches me something new? 

Potentially. HMRC allows training that supports your existing business, including relevant new skills. Training to start a new business or enter an unrelated area is excluded under its guidance.  

Do I need a business account to claim expenses? 

The account used doesn’t determine whether the cost qualifies. Separate accounts can make records easier to manage, but you still need evidence and a clear business purpose. 

Can I claim expenses and the trading allowance? 

You cannot claim actual expenses alongside the trading allowance against the same income. If your allowable expenses come to less than £1,000 (£3,000 as of April 2027), the allowance usually gives you the bigger deduction. If they’re higher, claiming actual expenses usually does. 

Browse more topics from this article

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