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Software product

Allowable Expense?

Risk level?

Allowable 🟢
Low risk 😃

Summary

Costs incurred by your business in the set-up or ongoing use of software or apps can be expensed (e.g. the cost of using earnr to manage your finances and tax).

Detail

Most software products and services are paid for via a subscription, this could be a web based app (e.g. Canva), a mobile app (e.g. earnr!) or a specialist software package (e.g. Adobe Creative Cloud). The subscription fees for an app used to run your business can be expensed.

Other software products are purchased for a one off fee, some useful mobile apps cost less than a pound, others such as Final Cut Pro, cost hundreds of pounds. You can expense the cost of purchasing an app for your business.

You may even incur costs to develop your own app or software, or perhaps configure a software tool for your business. These costs are less common for small businesses but can be expensed too.

These expenses might be relevant too

Website
The various costs that are incurred when you set up and run a website for your business can be claimed as expenses (e.g., hosting costs and domain name costs).
Read more
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
Utilities
If you have separate business premises, you can claim the full cost of utilities for that space. If you work from home, you may expense a portion of your bills.
Read more
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Allowable?
Risk level?
Possibly 🟡
Low risk 😃
Travel
Expenses you incur when you travel for business can normally be expensed if you're a sole trader. This does not include costs of travel between home and work.
Read more
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Allowable?
Risk level?
Allowable 🟢
Low risk 😃
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