What Expenses Can You Actually Claim as a Freelancer or Contractor in the UK? (And What You Can’t)

If you’re self-employed, there’s a good chance you’ve asked yourself at some point: “Can I put this through as an expense?”

It might be a laptop, a coffee while working, part of your rent, or even your phone bill. Some feel obviously business-related. Others sit in that grey area where you’re not quite sure—and that uncertainty can lead to one of two outcomes: either claiming too little and paying more tax than necessary, or claiming too much and worrying whether it’s correct.

At The Crew, we see both happen regularly. And more often than not, the issue isn’t a lack of effort—it’s a lack of clear, practical guidance.

So rather than giving you a long list to memorise, this blog will help you understand how expense rules actually work in practice, so you can make confident decisions day to day.

 

It Starts With One Simple Principle

When it comes to expenses, HM Revenue & Customs works from a core idea: a cost must be “wholly and exclusively” for business use to be allowable.

That phrase comes up a lot, and it can sound more complicated than it needs to be.

In simple terms, it means this: if something is purely for your business, it’s usually claimable. If it’s partly personal, things become less straightforward.

This is where most of the confusion comes from—not the obvious costs, but the ones that sit somewhere in between.

The Costs That Are Usually Straightforward

Some expenses are clearly linked to running your business. These tend to feel intuitive, and in most cases, they are allowable.

For example, things like software subscriptions, professional services, office supplies, or tools you need to do your work generally fall into this category.

If you’re a designer, your design software. If you’re a consultant, your accounting fees. If you’re a tradesperson, your equipment.

These are the areas where people are usually on solid ground. The challenge tends to arise when everyday life overlaps with business activity—which, for many freelancers, happens all the time.

Where It Gets Blurred: The “In-Between” Expenses

This is where things become less clear-cut.

Take your phone, for example. You probably use it for both business and personal reasons. The same goes for your home internet, or even your workspace if you work from home.

In these situations, it’s not about whether the expense is allowed or not—it’s about how much of it is allowed.

From our experience, this is where people either overcomplicate things or avoid claiming altogether. But it doesn’t need to be perfect. What matters is that your approach is reasonable, consistent, and justifiable if ever questioned.

A simple, fair split between business and personal use is often enough.

 

Working From Home: Practical, Not Perfect

Working from home is one of the most common areas of uncertainty.

You might be using your home as your office, but that doesn’t mean you can claim all your household costs. Instead, you’re looking at a proportion—based on how much of your home and time is used for business.

There are simplified methods available, as well as more detailed approaches. Neither is inherently “better”—it depends on what feels manageable for you.

What we often see is people either ignoring this entirely or trying to calculate it down to the smallest detail. In reality, there’s a sensible middle ground that keeps things accurate without becoming overwhelming.

 

The Expense That Causes the Most Debate: Food and Drink

Few topics create as much confusion as meals.

A common assumption is that if you’re working, you can claim your lunch. But in most cases, everyday meals aren’t considered a business expense—they’re seen as a personal cost.

There are exceptions, particularly when travel is involved. If you’re working away from your usual place of business, certain costs may be allowable.

This is one of those areas where context matters a lot. The same expense can be treated differently depending on the situation, which is why it often feels inconsistent.

 

Clothing: Not as Simple as It Seems

Another area that catches people out is clothing.

Even if you buy clothes specifically for work, they’re not always allowable. HMRC generally draws a line between everyday clothing and specialised workwear.

A branded uniform or protective gear? Usually fine.

A smart outfit you wear for client meetings? Typically not allowable, because it can also be worn outside of work.

It might not always feel logical, but the distinction comes back to that core principle—whether the expense is purely for business use.

 

Why People Often Get This Wrong (Without Realising)

Most mistakes around expenses don’t come from trying to bend the rules. They come from assumptions.

Sometimes it’s assuming something is claimable because “it feels business-related.” Other times, it’s avoiding claims entirely to stay on the safe side.

We often see:

• People missing legitimate expenses and paying more tax than necessary
• People keeping inconsistent records, making things harder later
• People relying on memory instead of tracking things as they go

None of these are unusual. They’re just signs that the system hasn’t been made clear enough.

 

It’s Less About Lists, More About Judgement

There’s no single list that covers every possible expense. And even if there were, it wouldn’t remove the need for judgement.

What tends to work better is understanding the principle, then applying it consistently.

If you find yourself asking, “Is this really for my business?”—that’s usually a good starting point.

And if the answer is “partly,” then the next step is thinking about what a fair business proportion looks like.

It doesn’t need to be complicated. It just needs to make sense.

 

Insights from The Accounting Crew

In our experience, confidence around expenses tends to come from clarity, not complexity.

Clients often feel more at ease once they realise they don’t need to justify every pound perfectly—they just need a reasonable, consistent approach.

We’ve also noticed that the biggest improvements come from small changes: keeping records up to date, separating business and personal spending where possible, and having a simple system that doesn’t rely on memory.

Interestingly, once that structure is in place, questions about expenses tend to reduce naturally. Not because the rules have changed—but because they feel easier to apply.

 

Conclusion: Getting Comfortable With the Grey Areas

Expenses aren’t always black and white. And that’s okay.

The goal isn’t to claim everything or nothing—it’s to find a balanced, accurate approach that reflects how your business actually operates.

By understanding the core principle and applying it consistently, you can reduce uncertainty, avoid common mistakes, and feel more confident in your decisions.

Because in the end, it’s not just about compliance—it’s about knowing you’re handling things properly without overthinking every detail.

 

Frequently Asked Questions about Claimable Freelancer Expenses

Can I claim my phone bill as a business expense?

Yes, but usually only the business portion if it’s used for both personal and work purposes.

Can I claim rent or mortgage costs?

You may be able to claim a portion if you work from home, depending on how your space is used.

Are meals ever claimable?

Only in certain situations, such as when travelling for business. Everyday meals are generally not allowable.

Can I claim clothing for work?

Only if it’s specialised workwear or a uniform. Everyday clothing is usually not allowed.

Do I need receipts for everything?

Keeping records is important. Digital copies are usually acceptable and make things easier to manage.

What happens if I make a mistake?

Mistakes can happen. The key is to be consistent and reasonable in your approach, and to correct things if needed.

 

Want a clearer way to handle your expenses?

If you’re unsure what you should or shouldn’t be claiming—or you just want a simpler way to manage it all—we’re here to help.

At The Crew, we focus on making things feel clear, practical, and tailored to your business, so you can spend less time second-guessing and more time getting on with what you do best.