Can I claim software, apps and subscriptions as a sole trader?

Yes, for software, apps and memberships your business uses. In 2026-27, monthly or yearly plans are running costs. A program bought outright for good is treated differently, and on the cash basis may get no relief.

Most trades now pay for a handful of apps: invoicing, job sheets, certificates, cloud storage and, since April 2026 for some and from April 2027 for many more, Making Tax Digital (MTD) software. The rules below follow GOV.UK, HM Revenue and Customs' Business Income Manual (BIM) and the Capital Allowances Act 2001, checked on 17 October 2026.

Monthly and yearly plans

HMRC's manual (BIM35810) says regular payments for a software licence are deductible, unless you can be shown to be paying off a capital sum in instalments. In our reading, that covers the usual subscription apps a tradesperson pays for each month or year:

• invoicing, quoting and job management apps
• certificate and test-result apps used by electricians and gas engineers
• accounting and MTD software
• cloud storage and email for the business
• design, estimating or measuring apps

The same page says HMRC should not argue that software with an expected useful life of less than 2 years is capital.

Software bought outright

A one-off payment for a program you keep using for good works differently, depending on how you keep your books.

Traditional accounting. HMRC's manual says a lump sum for a software licence "is itself capital". Section 71 of the Capital Allowances Act 2001 says computer software is treated as plant, so the cost goes through capital allowances instead. In our reading, the Annual Investment Allowance usually gives relief for the full cost in the same year.

Cash basis. This has been the default for sole traders since 2024-25, and it treats this kind of purchase less kindly. Section 33A of the Income Tax (Trading and Other Income) Act 2005 allows no cash-basis deduction for capital spent on a "non-qualifying intangible asset", which is one without a fixed maximum duration ending within 20 years. In our reading, a licence bought outright to use for good usually falls in that group, and on the cash basis only cars go through capital allowances, so it may get no tax relief at all. Two exceptions, in our reading: a licence with a fixed term of under 20 years, and software you expect to replace within 2 years, which HMRC's manual says it should not argue is capital.

In our reading, this is one reason a subscription is often the simpler choice for a trade on the cash basis. Our guide on the cash basis explains which one you use.

Subscriptions and memberships

GOV.UK's page on subscriptions lists two things you can claim:

• trade or professional journals
• trade body or professional organisation membership if related to your business

It also lists what you cannot claim: gym membership fees, donations to charity, and payments to political parties. Scheme fees such as competent person registration are covered in our guide on trade scheme and registration fees.

Business and personal use

GOV.UK says you can only claim allowable expenses for the business costs, and you need a reasonable method of dividing a cost that is partly personal. In our reading:

• a family streaming or music plan is personal, even if you play music in the van
• a shopping membership used mostly at home is personal unless you can show a business share
• an office suite or cloud plan used for work and home can be split by use

A worked example

A self-employed plumber on the cash basis pays for these in 2026-27.

If the plumber's profit sits between £12,570 and £50,270, outside Scotland, the £564 saves 20% Income Tax and 6% Class 4 National Insurance: £146.64. This is an example only.

What this means for you

In our reading, software and apps are among the simplest costs to claim: if the business uses it, the cost counts, and the only real questions are how you split shared plans and how a program bought outright is treated. If you are not registered for VAT, the amount you claim is the full price you paid, VAT included, in our reading.

Steps to claim software and subscriptions

1. List every app and subscription you pay for, from your bank and card statements.
2. Mark each one business, personal or mixed.
3. For mixed ones, work out a fair business share and note how you got it.
4. Keep the invoices or receipts: most apps email one each month.
5. Record the costs in your bookkeeping or MTD software as office or general business expenses.
6. Before buying a program outright, check how it is treated on your accounting basis; on traditional accounting it goes through capital allowances.

The free MTD check shows when Making Tax Digital starts for you, and the trades section has more guides.