What Expenses Can I Claim on Self-Assessment?

A complete guide to allowable expenses for self-employed individuals and freelancers.

Why this matters for digital businesses

Allowable expenses reduce taxable profit, but they need a clear business purpose and reliable records. For digital businesses, the biggest opportunities are often hidden in platform fees, software subscriptions, equipment, postage, packaging, content production, payment processor costs, and professional advice. The key is to separate business use from private use and keep enough evidence to explain the claim if HMRC asks later.

Key checks before you act

• Match every expense to a business activity, customer order, content project, or operating process.
• Separate mixed-use costs such as broadband, mobile phone, equipment, travel, and home working.
• Record marketplace fees, ad spend, payment processor charges, refunds, storage, postage, and packaging.
• Keep invoices, receipts, platform statements, and bank records for at least the required retention period.

Common mistakes to avoid

• Claiming personal spending because it was paid from the business account.
• Missing automatic platform fees because they never appear as separate bank payments.
• Treating larger equipment purchases the same way as small day-to-day expenses without checking capital allowance treatment.

Next steps

1. Create expense categories that match how your business actually spends money.
2. Review subscriptions every quarter and remove tools that no longer support revenue.
3. Ask for a review before claiming unusual, mixed-use, or high-value costs.

Questions digital businesses ask