Software subscriptions

Can I claim it?

Sole traderYesGenerally allowable

Limited companyYesGenerally allowable

EmployeeIt dependsDepends on your circumstances

Last checked 16 June 2026 · HMRC source

Subscriptions to software used in the business — accounting tools, design apps, cloud storage — are generally allowable running costs.

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Conditions

The software must be used for the business.
Where there is mixed business and personal use, restrict the claim to the business proportion.
This entry covers subscription (recurring-licence) software, which HMRC treats as an allowable running cost. One-off perpetual licences are treated differently: allowable as an expense if the software is used for less than two years, or claimed through capital allowances if used longer.

Common mistakes

Claiming personal streaming or lifestyle subscriptions as business software.

What to keep

Subscription invoices and receipts.

Real-world example

A bookkeeper pays a monthly subscription for accounting software used entirely for client work. The cost is allowable in full as a running expense.

Frequently asked

Is annual or monthly software treated as an everyday cost?

Ongoing subscriptions are usually treated as normal running costs rather than capital items, so they are claimed in the period they relate to.

What about a one-off software licence rather than a subscription?

One-off licences used for less than two years can be claimed as an allowable expense. Licences lasting longer are generally claimed through capital allowances instead. Subscription software with regular renewal payments is always an allowable running expense regardless of how long you use it.

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Related allowances

Source: HMRC guidance

This page is general information based on HMRC published guidance, not tax advice. Status shown is a plain-English summary — your own position can differ. Always check the HMRC source above and speak to a qualified accountant before making a claim.