Can I claim for training courses and equipment as a self-employed freelancer?

You can claim training that keeps your existing skills up to date or supports your current business, but not training that starts a new business or moves you into an unrelated area. Equipment used for work is claimable, usually through the £1 million Annual Investment Allowance, with private use taken out.

Training

You can claim training that helps you improve skills and knowledge you already use, keep up with technology in your industry, develop skills related to changes in your industry, or support the business, including admin skills. You cannot claim training that helps you start a new business or expand into areas not directly related to your industry.

The line is a matter of judgement. A photographer taking an advanced editing course is fine. The same photographer paying for a coding bootcamp to become a developer is not.

Equipment

A laptop, camera, monitor or specialist software you need for work is deductible. Longer-lasting items are normally claimed through capital allowances, and the Annual Investment Allowance lets you deduct the full cost up to £1 million. If you use the cash basis, which is the default for most sole traders, you generally deduct the cost when you pay it, other than for cars.

Mixed use

If you also use a laptop privately, claim only the business share, based on a reasonable estimate that you can support.

Worked example

What to do

1. Keep invoices for every course and item of equipment.
2. Write a line explaining why a course supports your current business.
3. Note the business-use percentage for shared equipment.
4. Ask us before claiming anything large that sits in the grey area.

Common mistakes

• Claiming a career-change course.
• Claiming 100% for a laptop the family also uses.
• Claiming a car as a normal purchase.

Sources: GOV.UK: training courses (self-employed expenses) · GOV.UK: Annual Investment Allowance