This guide covers are accountant fees tax-deductible for freelancers? for UK freelancers and small businesses in 2025/26.
The rule for freelance expenses is deceptively simple: costs must be 'wholly and exclusively' for business to be tax-deductible. The practice is where the questions live.
Every category — home office, mileage, phone, training, subscriptions — has HMRC's specific interpretation, and the difference between a claim that stands up to enquiry and one that doesn't is usually about record-keeping, not aggression.
Key facts
- Expenses must be 'wholly and exclusively' for business purposes — the fundamental HMRC test.
- You can claim the £6/week (£312/year) flat rate for home-office use, or a proportional apportionment of actual costs (rent, utilities, council tax) based on room use and time.
- Mileage in a personal vehicle: 45p/mile for the first 10,000 business miles per tax year, then 25p/mile above that.
- Client entertaining is not tax-deductible in the UK — staff entertaining up to £150/head/year is, subject to conditions.
- Capital allowances (Annual Investment Allowance) let you deduct 100% of qualifying equipment purchases up to £1,000,000 per year.
- Keep receipts (or digital copies) for at least five years after the relevant Self Assessment deadline.
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The wholly-and-exclusively test
HMRC's core test for allowability is that a cost must be incurred 'wholly and exclusively for the purposes of the trade'.
Costs with mixed personal and business use are trickier. Some can be apportioned (home office, phone bills). Others (client entertainment) are simply not deductible regardless of business intent.
Aggressive claims that fail the test create arrears, interest and penalties — sometimes years later. The goal isn't maximum claim; it's defensible claim.
The commonly claimed categories
Home office: either the £6/week flat rate or a proportional apportionment of actual home costs based on rooms used exclusively for business.
Mileage: 45p/mile for the first 10,000 business miles in a tax year, 25p/mile after that, using a personal vehicle.
Equipment: computers, cameras, professional tools — either fully deducted via the Annual Investment Allowance or depreciated as capital assets.
Subscriptions and software: usually 100% deductible if wholly business-use. Mixed-use split by reasonable apportionment.
Record-keeping and audit trail
For each claimed expense you need: date, amount, category, business purpose, and (ideally) a receipt.
Digital receipt capture (via apps like Dext or your accounting software) is dramatically more reliable than a shoebox of paper.
Keep records for at least five years after the relevant Self Assessment deadline. HMRC can open an enquiry within 12 months of filing, and later in cases of suspected error.
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Related: PayslipCheck
If your work mixes PAYE and freelance income, PayslipCheck helps you see how the two interact — expenses on one side, taxable earnings on the other.
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You can claim a proportion of home costs (utilities, council tax, some maintenance) based on room use and time. Mortgage interest (not capital repayment) is potentially claimable but has capital-gains implications on sale of the property — most freelancers use the flat rate or a light-touch apportionment for simplicity.
HMRC's simplified expenses rate for using your home as a workplace — £312/year, no evidence required. It's low but easy. Actual-cost apportionment is often higher if you have a dedicated home office.
Subsistence when travelling for work is deductible. Client entertaining is not. Staff entertaining (including yourself if you're a limited-company director) is deductible up to £150/head/year, subject to conditions.
Training that maintains or updates existing skills is generally deductible. Training that acquires new skills (getting a first professional qualification, learning a new discipline) is generally not.
Apportion by usage. Either an itemised split or a reasonable percentage. Whatever method you use, document it. HMRC accepts reasonable apportionment; they don't accept 100% claims on obviously mixed-use lines.
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This guide is general information based on UK rules for the 2025/26 tax year. It is not personal tax or legal advice. For decisions affecting your tax position or legal exposure, consult a qualified accountant or solicitor.