If I work freelance what expenses can I claim?

In general, for an expense to be regarded as allowable for tax purposes it must be directly related to the running of the business.

For example, the following expenses can be claimed:  

• Goods for resale
• Rent
• Rates
• Light & heat
• Insurance
• Accountancy fees
• Interest on loans to finance the business

Equipment like computers, vans etc. are allowable deductions but the cost is usually spread over 8 years rather than claiming the full cost in the year you buy the equipment.

Many freelancers work from home so find themselves spending on some things that are for both business and private use. In this case you can claim a deduction for part of the expense. This would include items such as phone bills, motor expenses and rent. You must work out how much of the expenditure was for business purposes and claim a deduction for that amount only.

Remember some expenses never allowed including client entertainment, clothes and personal mileage.

Date published 14 May 2019

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.