Contractors

What expenses can I claim as a contractor?

UK contractors operating through a limited company can claim a wide range of business expenses against corporation tax. Allowable costs include travel and subsistence, professional insurance, office equipment, software subscriptions, training courses, accountancy fees, and a proportion of home office costs. Every expense must be wholly and exclusively for business purposes, and keeping proper receipts and records is essential for HMRC compliance.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

Key takeaways

Allowable contractor expenses must be incurred wholly and exclusively for business purposes, and you need receipts or digital records to support each claim.
Common claimable expenses include travel to temporary workplaces, professional indemnity insurance, office equipment, software licences, mobile phone contracts, and accountancy fees.
You can claim a proportion of home running costs if you use part of your home as a regular office, either based on actual costs or the HMRC simplified flat rate.
Training and professional development courses are allowable provided they maintain or update skills directly related to your current contracting work.
Entertaining clients is not an allowable expense for corporation tax purposes, although business-related subsistence costs for yourself while travelling are claimable.

As a contractor, there are a vast number of different expenses that can be claimed for when working through a limited company.

These expenses must be deemed wholly, exclusively and necessary for business to carry out it's duties and some examples can include:

Travel
Food (subsistence)
Accommodation
Computer & office equipment
Postage & Stationery
Accountancy, legal & professional fees
Business insurance
Marketing
Subscription
Telephone & internet

Further information is available on our limited company expenses and tax allowances guide.

If you're working through an umbrella company, the types of expenses you can claim for may include:

Client billable expenses
Business costs
Non-client billable expenses

If you're subject to the SDC legislation, you won't be able to claim for home-to-work travel and subsistence expenses. Find out more in our guide to umbrella contractor expenses.

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Frequently asked questions

Can contractors claim travel expenses to a client site?

Yes, provided the client site qualifies as a temporary workplace under HMRC rules. HMRC defines temporary as a location you attend for less than 24 months under a single engagement or contract. Claimable travel costs include mileage at HMRC approved rates, public transport fares, parking charges, and reasonable subsistence such as meals and refreshments purchased during the business journey.

What home office expenses can a contractor claim?

You can claim a proportion of household costs including heating, electricity, broadband, and council tax based on the number of rooms used for work and the hours you spend working. Alternatively, HMRC allows a simplified flat rate of 6 pounds per week without needing to calculate actual costs or retain utility bills, making this the easier option for most contractors.

Are accountancy fees tax deductible for contractors?

Yes. Fees paid to your accountant for preparing company annual accounts, filing corporation tax returns, managing monthly payroll, handling quarterly VAT returns, and completing your personal self-assessment are all allowable business expenses. They are deducted from your company profits before corporation tax is calculated, effectively reducing the net cost of your accountancy package.

Can I claim the cost of a laptop or computer as a contractor?

Yes. Equipment purchased for business use is an allowable expense that reduces your taxable company profits. Items costing under 1,000 pounds can usually be claimed in full in the year of purchase through the Annual Investment Allowance. If the item is also used personally, you should only claim the proportion that relates to genuine business use.

Is training a claimable expense for UK contractors?

Training is claimable if it updates or maintains skills you already use in your current contracting work and is directly relevant to your trade. Courses that teach entirely new skills unrelated to your existing professional expertise are not allowable under HMRC rules. Relevant industry conferences, professional body certifications, technical subscriptions, and CPD courses also qualify as deductible expenses.

Can contractors claim mobile phone and broadband costs?

Yes. A business mobile phone contract held in your company name is fully deductible against your company profits. If you use a personal phone for business calls and data, you can claim the business-use proportion of the monthly cost. Broadband costs can be partially claimed as part of your overall home office expenses based on your business usage hours.

What expenses cannot be claimed by contractors?

Non-allowable expenses include client entertainment and hospitality, clothing that is not specialist protective wear or a uniform, commuting costs to a permanent workplace, HMRC fines and penalties, and any form of personal expenditure. Food and drink purchased at your normal place of work is also non-deductible unless you are travelling away from base to a temporary client site.