As a freelancer or sole trader in the UK, knowing what expenses you can legally claim helps reduce your tax bill — and keeps HMRC off your back.
But what exactly counts as a legitimate business expense? This guide explains the key rules and common claims for UK freelancers in 2025.
🧾 What Counts as a Business Expense?
HMRC says you can claim expenses that are “wholly and exclusively” for your business.
That means:
✅ Directly related to your freelance work
✅ Not for personal use
✅ Reasonable and clearly documented
✅ Common Freelance Expenses You Can Claim
1. Office and Workspace
- Home office proportion (heating, electricity, internet)
- Rent for coworking space or business premises
2. Equipment & Tools
- Computers, phones, cameras
- Software subscriptions (accounting, CRM, editing tools)
- Office furniture
3. Travel & Transport
- Mileage for business travel (45p per mile for cars)
- Public transport to client meetings
- Parking, tolls, business-related taxis (Does not include commuting to a fixed workplace)
4. Professional Services
- Accountants
- Legal advice
- Insurance costs (public liability, professional indemnity)
👉 Compare freelancer insurance options →
5. Marketing & Website Costs
- Domain names and hosting
- Website design and maintenance
- Paid ads or promotions
- Business cards and printed materials
6. Training & Development
- Courses or qualifications directly related to your work
- Industry-specific events (excluding travel unless overnight)
7. Phone & Internet
- Business mobile phone bill
- Proportion of home internet (if used for work)
⚠️ Expenses You Can’t Claim
- Personal living costs (clothes, food, rent)
- Daily commuting to a regular workplace
- Entertaining clients (limited allowance)
- Fines or penalties
💡 Tips for Staying HMRC-Compliant
✅ Keep receipts, invoices, and mileage records
✅ Track everything with accounting software
✅ Only claim what is genuinely business-related
👉 Best Free Accounting Tools for UK Freelancers
📌 Final Thoughts
Knowing what you can (and can’t) claim as a freelancer helps you:
- Reduce your tax bill
- Stay organised
- Avoid HMRC penalties
If your expenses are simple, you can manage this yourself with the right tools. But as things grow, consider getting an accountant to help.