The Subscriptions Quietly Eating Into Your Profits - and How to Claim Them Back
Cast your eye over your bank statement this month.
Go on, really look at it. Chances are there’s a handful of recurring payments quietly going out that you barely notice anymore. Software here, a membership there, maybe a trade publication you’ve subscribed to for years.
Now ask yourself: how many of those are you actually claiming as a business expense?
If the answer is “not all of them” you might be leaving money on the table.
The Hidden Cost of Running a Business
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As a sole trader, your overheads can be easy to underestimate, especially when they come in small, monthly chunks rather than one big invoice. But subscriptions and memberships add up. And many of them are a genuine, necessary cost of running your business.
The good news is that HMRC recognises this. If a subscription or membership is relevant to your trade, it can be claimed as an allowable expense, reducing your taxable profit and ultimately your tax bill.
What Can You Actually Claim?
The rule of thumb is the same as with most business expenses: it needs to be wholly and exclusively for the purpose of your trade.
You CAN claim for:
Professional memberships and trade bodies - if membership is relevant to your work and the organisation is HMRC-approved
Software subscriptions - accounting tools, project management apps, design software, invoicing platforms, anything you use to run your business
Industry publications and journals - magazines, newsletters, or online resources that keep you up to date in your field
Business networking memberships - paid groups or platforms where the primary purpose is professional networking or business development
Online tools and platforms - stock image libraries, scheduling tools, email marketing platforms, cloud storage - if they’re used for your business
You CANNOT claim for:
Personal subscriptions - streaming services, gym memberships, general interest magazines
Memberships where the benefit is primarily personal rather than professional
Subscriptions that aren’t related to your trade
It’s worth noting that HMRC publishes a list of approved professional organisations whose fees are allowable, if you’re a member of a trade body, it’s worth checking whether yours is on the list.
The Grey Area: Personal and Business Overlap
Some subscriptions sit in tricky territory. What about a LinkedIn Premium subscription, is that business or personal? What about a cloud storage service you use for both work files and family photos?
Where there’s a clear, genuine business purpose, you can make a case for the claim. Where usage is genuinely mixed, it’s worth having a conversation with your bookkeeper about what proportion could reasonably be attributed to business use.
Don’t guess, it’s always better to be accurate than optimistic.
How to Keep on Top of It
Subscriptions are easy to lose track of precisely because they’re automatic. Here are a few simple habits that make a real difference:
Do a regular subscription audit - go through your bank statements every few months and list every recurring payment. Note which are business, which are personal, and which are mixed.
Keep confirmation emails - most subscriptions send a receipt or invoice when they renew. Save these somewhere you can find them.
Categorise as you go - if you use bookkeeping software, log subscriptions under the correct expense category as they come out. Doing it monthly is far easier than trying to recall everything at the end of the year.
Check the HMRC approved list - if you pay professional membership fees, verify the organisation is on HMRC’s approved list so you can claim with confidence.
A Note on VAT
If you’re VAT-registered, many software subscriptions from overseas providers (such as Google, Adobe, or Zoom) apply the reverse charge mechanism. This is a VAT technicality worth flagging to your bookkeeper to ensure it’s handled correctly in your accounts.
Subscriptions and memberships might feel like small, forgettable costs, but they’re often some of the most consistent, claimable expenses a sole trader has. Getting them properly recorded and claimed means your tax return accurately reflects the true cost of running your business.
A quick review of what’s going out each month could make a genuine difference to your tax bill.
Not sure what you can and can’t claim? Get in touch, I can help you make sense of it.
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