7 Top Tax Deductions for UK Side Gig Workers

Are you navigating the world of side gigs or freelancing in the UK? Whether you’re self-employed or balancing a side hustle with a full-time job, tackling your taxes can feel overwhelming. The good news is that you can legally reduce your tax bill by claiming several allowable expenses. From travel costs to marketing investments, understanding what you can claim and how to stay compliant can make all the difference when filing your tax return. This guide breaks down the seven most important tax deductions for UK side gig workers with relatable examples to help you save money and avoid common pitfalls. What travel expenses can I claim? If your work requires you to travel, those costs might be deductible. For example, Sarah, a part-time photographer, frequently visits clients across the UK. She claims work-related travel expenses, like fuel, train tickets, and parking fees. However, it’s important to note that commuting from your home to a regular office or workspace is considered a personal, disallowable expense. Stay mindful of this distinction when calculating your deductions, as HMRC is strict on this rule. Discover more details on allowable travel expenses from HMRC's official guide here. Can I claim the cost of my work equipment? Tom, a graphic designer, recently upgraded his laptop because it’s essential for his side hustle. This purchase is a perfectly valid expense for tax purposes. Similarly, software subscriptions like Adobe Creative Cloud or Canva Pro can also be claimed if they’re vital to your work. However, personal items like a gaming console or non-essential gadgets won’t qualify, even if they’re “occasionally” used for work. Stick to equipment that directly contributes to your professional output to avoid any pushback during tax assessments. Can I deduct home office expenses? Many freelancers and side gig workers operate from home, like Emma, who sells handmade candles online. If a portion of your home serves as your office, you can claim a percentage of your household expenses, such as utilities, internet, and rent. For instance, Emma calculated the percentage of her home used exclusively for business and applied that percentage to her monthly bills. However, make sure the space you claim is solely dedicated to work activities. HMRC might disallow expenses for shared areas like your dining table or living room. What about marketing and advertising costs? If you’re investing in promoting your business, those costs are deductible. Take David, a self-employed fitness coach, who recently ran a social media ad campaign to attract clients. He can claim costs for Facebook ads, his website hosting, and even printed business cards. Essentially, any expense tied directly to promoting your business can fall under this category. Getting the word out is crucial for success, and HMRC acknowledges that by allowing marketing and advertising costs as valid deductions. Are training and education expenses claimable? Hannah operates a part-time baking side hustle and recently enrolled in a masterclass to level up her pastry skills. Such training costs are tax-deductible, provided they enhance your current skills for your existing business. That said, you can’t claim courses unrelated to your primary work. If Hannah also decides to sign up for a painting course as a hobby, that expenditure would not be allowed. Make sure the training directly aligns with your professional growth. What counts as tools and supplies? For Jack, a handyman with a growing side hustle, tools are essential. Purchases like drills, hammers, paintbrushes, and even safety gloves are fully deductible. This category extends to smaller supplies, too. Keeping receipts for items like screws, nails, or sandpaper can further reduce your tax bill. Maintaining organised records of all these purchases ensures you benefit from every deduction you’re entitled to. Can I deduct professional fees or subscriptions? Lisa, a freelance writer, subscribes to industry journals and professional groups to stay updated with trends in her field. These are fully allowable. Hiring an accountant to assist with her tax submissions is also deductible. Although hiring an accountant might feel like an extra expense, doing so can save you more by ensuring you claim all you’re legally entitled to. This is especially important if you're navigating the new Making Tax Digital regulations. Explore how online accountants can simplify this process here. Take control of your taxes and your side hustle Navigating tax deductions doesn’t have to be a headache for UK freelancers and side gig workers. Knowing the difference between allowable and disallowable expenses can help you save money and stay compliant with HMRC. But you don’t have to do this alone. At Virtue Accountants, we specialise in helping self-employed individuals and small businesses maximise their tax savings while staying compliant. Whether you’re juggling National Insurance, Making Tax Digital, or VAT returns, we're here to guide you every step of the way. Take control of your finances so you can focus on growing your side hustle. Connect with one of our qualified virtual accountants today and discover how much you can save.