01 / BUSINESS COSTS

Costs that may be allowable

These are common examples. A cost is allowable only if it is wholly and exclusively for your business, so check GOV.UK guidance on expenses if you are self-employed, or ask an accountant.

  • Design software subscriptions used for work may be allowable
  • Computer equipment and peripherals used for work may be allowable
  • Fonts, stock images and other licensed design assets may be allowable
  • Website hosting and domain costs for the business may be allowable
  • Business insurance may be allowable
  • Advertising and portfolio costs may be allowable
  • Business share of phone and internet costs may be allowable
  • Training related to your existing design business may be allowable
MILEAGE AND THE TRADING ALLOWANCE

Mileage and the trading allowance

For eligible cars and goods vehicles, simplified mileage is 45p per mile for the first 10,000 business miles and 25p after that in 2025/26; from 6 April 2026 (2026/27) it is 55p for the first 10,000 business miles and 25p after. You cannot claim mileage and actual vehicle costs for the same vehicle. Check GOV.UK mileage guidance.

The £1,000 trading allowance may be available instead of deducting expenses; you cannot claim expenses for the same income if you use the allowance. Check GOV.UK trading allowance guidance for your circumstances.

COMMON MISTAKES

Common mistakes

  • Separating font and stock-asset licences from the project they were used for.
  • Leaving software-subscription invoices out of the business records.
  • Combining personal and business use of a phone, internet connection or device.
  • Not keeping client project records with the related invoices and payments.
TRADE RECORDS

Records worth keeping for this trade

  • Client project records, invoices and payment statements.
  • Software subscription invoices and renewal records.
  • Font and stock-asset licence receipts or terms.
  • Equipment receipts and records of business share for phone and internet use.

What should a graphic designer keep for licensed design assets? Retain the licence receipt or terms with the project record, and keep software subscription invoices with the related business records.

02 / RECORD KEEPING

Keep records as you go

Keep receipts, invoices and mileage details as you work, and record business and personal use separately where needed. Organised records make it easier to prepare your Self Assessment return.

Not tax advice. Not affiliated with, or endorsed by, HMRC.