Understanding what counts as a legitimate business expense is essential for anyone building a business in the creative industry. Whether you’re a freelance designer, photographer, writer, filmmaker, or content creator, knowing how to correctly identify and claim allowable costs can make a meaningful difference to your tax bill and cash flow.
In the UK, HM Revenue & Customs (HMRC) has clear rules about business expenses, and learning what qualifies can help your creative business thrive.
At the heart of what counts is a simple principle: the cost must be incurred “wholly and exclusively” for the purposes of your trade. If you wouldn’t have spent the money without running your creative business, then it is likely allowable and this is where expert accountants for creatives can add real value.
Everyday Costs That Count
For most creative freelancers and small business owners, the most common expenses fall into a few key categories:
Tools and Equipment
The technology and hardware you rely on every day are almost always legitimate expenses. This includes computers, cameras, microphones, lighting rigs, tablets, and other gear essential to creating your work. If the item is used partly for personal reasons, you can usually claim the portion that relates to business use.
Software and Subscriptions
Subscriptions to tools like Adobe Creative Cloud, design platforms, project management software, cloud services, and paid stock libraries are generally allowable. These are ongoing costs that are directly tied to delivering your creative output.
Workspace Costs
If you work from home, you can often claim a proportion of household bills including broadband, phone, rent or mortgage interest, utilities, and council tax based on how much of your home is used for business. Alternatively, renting an external office or studio space is a fully deductible business cost.
Travel and Transport
Trips made specifically for business like visiting a photoshoot location, meeting a client, attending a workshop, or going to an industry event can be claimed. This includes train and bus fares, fuel, parking charges, and even hotel stays when overnight travel is necessary.
Website and Marketing Costs
Your website is often your digital shopfront. Domain fees, hosting costs, web design and development, online advertising, and promotional activities are all legitimate expenses because they help generate income.
Professional Services and Development
Running a business means paying for professional support now and then. Fees for legal advice, outsourced bookkeeping, and consultants are classed as business costs, and this includes expert accounting support. That’s why working with accountants for creatives can be especially helpful they understand the unique expense categories relevant to artists, designers, influencers, and other creative professionals.
Professional development expenses such as workshops, online courses, and industry training are also deductible, provided they relate to your current line of work. These not only help you refine your craft but also support ongoing business growth.
Keeping Records and Avoiding Pitfalls
To claim business expenses, you must keep accurate records. HMRC expects you to hold receipts, invoices, and documentary evidence for up to six years after the relevant tax year. Good record-keeping practices make tax time much easier and reduce the risk of disputes or penalties.
It’s also important to recognise what does not count. Personal bills like everyday meals, entertainment for clients, personal holidays, and general clothing that you could wear outside of work are not allowable. In cases where items are used for both business and personal purposes, only the business portion can be claimed.
From cameras and computers to web hosting and travel, knowing what counts as a legitimate business expense empowers creatives to reduce their taxable profits and reinvest in their craft. Navigating the fine details of HMRC’s rules can be complex and that’s exactly where accountants for creatives become invaluable partners. Working with Raedan, you’ll be working with people who understand the creative sector ensures that you’re not only compliant but also maximising every allowable claim. Whether you’re just starting out or scaling up, getting your expenses right will help support a sustainable and successful creative business.