Do you have a limited company?

Employees cannot claim subcontractor costs. As an employee, you cannot claim tax relief for hiring help with your work. Your employer pays for business costs, not you. If you need to pay for assistance, this should go through your employer. There is no mechanism for employees to claim business expenses for subcontracting.

Is this for construction or building work?

CIS rules apply to construction work. Payments to subcontractors for construction work fall under the Construction Industry Scheme (CIS). You must register as a contractor with HMRC, verify your subcontractors, and make deductions from their payments (unless they're gross payment status). The net amount is still a deductible expense.

Are you paying a family member or spouse?

Paying family members requires extra care. You can pay family members for genuine work, and it is deductible. However, HMRC scrutinises these payments more closely. The amount must be reasonable for the work done - what you'd pay a stranger. Keep records of hours worked and tasks performed. Excessive payments may be challenged.

Is the freelancer or contractor based overseas?

Overseas contractors can be claimed. Payments to overseas freelancers and contractors are deductible business expenses. There are no special restrictions on overseas suppliers. Keep invoices and records as normal. Be aware that currency conversion may apply, and VAT rules differ for overseas services.

Is this for genuine business services (not personal tasks)?

Yes, contractor and freelancer costs are deductible. Payments to subcontractors, freelancers, and other businesses for work done on your behalf are allowable business expenses. This is a normal cost of doing business. Keep invoices and records of the work done, and ensure the relationship is genuinely contractor (not employment).

Is this for construction or building work?

CIS rules apply to construction work. Payments to subcontractors for construction work fall under the Construction Industry Scheme (CIS). You must register as a contractor with HMRC, verify your subcontractors, and make deductions from their payments (unless they're gross payment status). The net amount is still a deductible expense.

Can I Expense This?←All expenses

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Find out if you can claim subcontractor and freelancer costs as business expenses.

Question 1

Can I Expense Hiring Freelancers or Contractors?

1Question 1

Are you self-employed or a sole trader?

This includes freelancers and contractors not working through a limited company.

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Important disclaimer

This tool provides general guidance based on HMRC rules at the time of writing and is for informational purposes only. It does not constitute professional tax, legal, or financial advice. Tax rules change frequently and this information may be outdated or incomplete. No warranty is given as to accuracy. We accept no liability for any loss, damage, or consequences arising from reliance on this guidance. Use of this tool does not create a professional-client relationship. Your specific circumstances may differ significantly. Always consult a qualified accountant or tax advisor before making financial decisions.