Is the software used for your business?

Not claimable as a business expense. Software that has no business use cannot be claimed as a business expense. Only software used for your trade or profession qualifies.

Is the software used exclusively for business (no personal use)?

Fully deductible as a business expense. Software subscriptions and SaaS tools used for your business are fully deductible revenue expenses. Unlike hardware, software subscriptions are typically claimed in full in the year you pay for them, not spread over multiple years.

Is the software used mostly for business (more than 50%)?

You can claim the business-use proportion. Since the software is used for both business and personal purposes, you can only claim the proportion that relates to business use. For example, if you use a creative suite 70% for client work and 30% for personal projects, you can claim 70% of the subscription cost.

Is the software used for company business?

Not a valid company expense. Software with no business purpose cannot be claimed as a company expense. If the company pays for personal software, it may be treated as a taxable benefit.

Is the software used exclusively or mainly for business?

Fully deductible as a company expense. Software subscriptions for business use are allowable expenses for your limited company. The company should pay for the subscription directly (or reimburse you), and it reduces the company's taxable profit.

Does your employer provide the software you need for work?

Use your employer-provided software. Your employer provides the software you need, which is the standard arrangement. There's no tax implication for you, and your employer claims the expense.

Can I Expense This?←All expenses

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Find out if you can claim software subscriptions, cloud services, and SaaS tools as a business expense.

Question 1

Can I Expense Software Subscriptions and SaaS Tools?

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 Tax rules change frequently and this information may be outdated or incomplete.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.