Answers · UK 2025/26
Can freelancers claim invoice and accounting software as a business expense?
Yes. Subscription costs for invoicing, accounting, or project management software used wholly for business are fully deductible revenue expenses.
Full answer
HMRC allows sole traders and freelancers to deduct the cost of software subscriptions used wholly and exclusively for their business. This includes accounting platforms (such as QuickBooks, Xero, or FreeAgent), invoicing tools, time-tracking software, and project management apps. Annual or monthly subscription fees are revenue expenses deductible in the year they are incurred. One-off software licences may be treated as capital expenditure (deductible via the Annual Investment Allowance up to £1,000,000). If software has mixed personal and business use, only the business proportion is deductible. From April 2026, self-employed individuals with income above £50,000 must use Making Tax Digital-compatible software for Income Tax Self Assessment, making these costs not only deductible but practically necessary.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.