Claimable expenses, honestly explained
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The rule is wholly and exclusively for business purposes. Not "probably fine" — the test. Here's what clears it for a typical PSC.
Claim with confidence
- Equipment: laptop, phone, monitor — annual investment allowance covers most kit up to £1m
- Software: JetBrains, M365, Adobe, cloud hosting for dev work
- Accountancy: your £600–£1,200/yr fees
- Professional memberships: dues for your relevant trade body
- Business insurance: PI, business interruption, cyber
- Training: updating existing skills is allowed; brand-new-skill courses usually aren't
- Home office: £6/week simplified, or apportion actual costs (a defensible method)
- Travel to temporary workplaces: genuinely temporary — this is where inside-IR35 engagements differ (see below)
- Bank charges, companies house fees, EIS/marketing costs
Don't claim
- Commuting to a permanent workplace — for a two-year engagement, one site is arguably permanent
- Lunch (ordinary meals), unless overnight away
- Clothing that isn't branded/protective
- Anything with "dual purpose" you can't evidence out of
The inside-IR35 catch
Inside engagements via an agency/umbrella restrict you to the 35p/mile and "own workplace" rules — the 5% virtual allowance is gone since 2021 via dispensations, and travel to the client site is generally not deductible. Another reason the outside premium matters.
Verify current rules at gov.uk; not advice.
The record-keeping that makes claims stick
A claim without a receipt is a discount you gave yourself. Keep digital copies (photograph paper receipts immediately — they fade), log the business purpose against each item, and reconcile monthly rather than in a January panic. The wholly-and-exclusively test is evidential: a laptop used 90% for work is claimable in full only if your apportionment method is written down and consistent. Accountants see the same January shoebox every year; the contractors who never have enquiries are the ones whose records answer questions before they're asked. Pair the habit with the filing calendar in the setup checklist and the whole compliance stack becomes boring — which is the goal.
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