Allowable Business Expenses: What you need to know

Updated on January 16, 2026

Why are they so important?

Being self-employed means you’re technically running a business (even if it’s just you with a backpack and a can-do attitude). And businesses aren’t taxed on their income — they’re taxed on their profit.

Profit = income minus allowable business expenses.

So let's say you earn £10,000 from performing and lessons, and your genuine business expenses are £4,000. You’re only taxed on the remaining £6,000. If you don’t record and claim the expenses you’ve genuinely had to spend to work… you’re just paying tax you don’t need to. And nobody here has time for that.

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What counts as an allowable business expense?

An allowable business expense is something you’ve spent money on wholly and exclusively for running your self-employed career. If it’s something that has a personal element too (like your phone), you just need to claim a reasonable percentage. No one expects you to calculate usage down to the minute — just be able to explain your logic if asked.

A good rule of thumb:

If you’d feel comfortable explaining the expense to HMRC as something you genuinely needed to run your performing career — you’re probably good.

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How do I keep track of them?

You don’t need to upload receipts at the moment of doing your tax return, but you do need to be able to produce evidence if HMRC ever asks. They can check a tax return up to 12 months after the 31 January deadline, and you need to keep your records for at least 5 years after that.

Receipts fade (why do they do that?!), so the easiest way is to photograph or screenshot things as you go. The SansDrama Web App stores this all neatly. If you're not using the app, any organised system is fine — we just want it to be findable, not “mystery shoebox of doom”.

Bank statements alone are not ideal evidence because they don’t show what was actually purchased — only the shop name and amount. HMRC like clarity.

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What about cash payments without a receipt?

HMRC aren’t generally bothered about small, clearly recorded cash expenses, as long as you have a consistent system for recording them (a note, a log, an app entry). If something is over about £50, always try to get evidence — even a confirmation email or message counts.

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So what can I actually claim?

Here are examples that are particularly relevant to performers:

Subscriptions

Equity membership, Spotlight, Mandy, Casting Call Pro, and similar — all deductible. Spotify/Apple Music is usually not unless clearly used just for teaching/research.

Tech + Software

Laptop, printer, antivirus, Microsoft Office, cloud storage — anything you genuinely use to run your business.

Stationery + Postage

If it supports your business admin, it counts.

Agent Commission

Record your income as the full amount before commission, and record the commission (and VAT on it) as an expense.

Financial + Professional

Accountants, bookkeeping tools, legal fees for contract help.

Travel

Travel to auditions, classes, networking events, theatre research trips — all allowable. Travel to your normal place of work is not. If you're on a theatre contract:

• A one-year contract = travel usually allowable.
• If extended past two years = that venue becomes your “permanent workplace” and travel stops being allowable at that point.

Hotel + Meal Costs

If you’re away overnight for work (e.g., audition in another city), hotel + reasonable food costs are deductible.

Subsistence

You can claim reasonable food/drink when you’re travelling for work. Think £10–£15 per meal, not Michelin tasting menus.

Clothing

Only things used exclusively for performing work — e.g. character shoes, audition attire that isn't everyday clothing.

Marketing + Promotion

Headshots, showreels, dance reels, website costs, advertising, casting database fees.

Research

Theatre tickets and shows you attend for research relevant to your work.

Training / Maintenance

Classes, coaching, workshops that develop your current professional skills.

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Dual-purpose expenses

Phone

If half your calls/messages/emails are business, claim 50%. If it's less, claim less. It’s your judgment.

Working From Home

You can use HMRC’s flat-rate system:

Hours of business use per month	Flat rate per month
25 to 50	£10
51 to 100	£18
101+	£26

Vehicles

Use HMRC’s simplified mileage rates (recommended):

Vehicle	Rate
Cars/vans first 10,000 miles	45p/mile
Cars/vans after 10,000 miles	25p/mile
Motorcycles	24p/mile

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How do I claim all this?

When you do your tax return, there’s a box that simply asks for your total expenses. Pop the total in — and HMRC takes care of the calculation.

If you want to see what your tax bill will be before January, the SansDrama Web App shows your tax + NI building live throughout the year.

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