Professional fees cover a range of business costs from your accountant's bill to professional insurance. These are some of the most straightforward expenses to claim — if you need them for your business, they're almost always allowable.
What Professional Fees Can You Claim?
- Accountant fees: The cost of having your accounts prepared and your Self Assessment filed is always allowable.
- Legal fees: Business contract reviews, debt collection, trademark registration, and other business-related legal work.
- Professional indemnity insurance: Essential for consultants, designers, developers, and many other professions.
- Public liability insurance: Required if you work on client premises or interact with the public.
- Professional body memberships: ACCA, RICS, ICE, CIPD, etc. — provided they're relevant to your trade and on HMRC's approved list.
- Business bank account fees: Monthly fees, transaction charges, and card fees.
- Business credit card charges: Interest and fees on business transactions.
- Debt recovery costs: Solicitor or agency fees for chasing unpaid invoices.
What You CANNOT Claim
- Personal legal fees: Divorce, personal injury claims, or non-business disputes.
- HMRC fines and penalties: Late filing penalties, tax surcharges — these are never allowable.
- Personal bank charges: Overdraft fees on personal accounts, even if you use the account for some business transactions.
- Life insurance: This is a personal expense regardless of your business structure.
- Speeding fines or parking penalties: Even if incurred during a business trip.
Example: Professional Fees for a Freelance IT Consultant
| Expense | Amount |
|---|---|
| Accountant fees (annual) | £600 |
| Professional indemnity insurance | £350 |
| ICE membership | £180 |
| Business bank account fees | £72 |
| Legal review of contract | £300 |
| Total claimable professional fees | £1,502 |
At the 20% basic rate, this saves £300 in income tax.