# Claiming Accountant Fees on Your UK Tax Return

Learn how self-employed sole traders and partnerships can claim accountant fees as an allowable business expense to reduce their UK tax bills.

**Published:** 2026-07-06  
**Updated:** 2026-07-06  
**Source:** https://aztajournal.com/gb/claiming-accountant-fees-tax-return

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> Self-employed individuals and partnerships can claim accountant fees as an allowable business expense on their UK Self Assessment tax returns. This direct guide details the legal criteria, qualifying expenses, and reporting procedures to reduce your taxable profits for the 2025/26 tax year.

Yes, you can claim accountant fees on your UK Self Assessment tax return for the 2025/26 tax year, provided the fees relate directly to your self-employed business affairs. This deduction reduces your overall trading profits, which in turn lowers the amount of income tax and National Insurance you must pay. If the accounting fees relate entirely to your personal tax return or investments, they are generally not qualifying business expenses.

## Key Takeaways: Accountant fees on tax returns

To determine whether you can deduct professional fees from your taxable income, apply these core UK tax criteria:

- The accountant's work must be directly linked to your business, such as preparing annual business trade accounts.
- The fees must meet the statutory requirement of being completely business-related, meaning personal elements must be excluded.
- You must allocate and apportion any combined invoices that bundle both business accounts and personal tax return filing.
- You must retain professional fee invoices and receipts as digital or physical records for potential HM Revenue and Customs checks.

## Can I claim accountant fees as a business expense UK?

You can deduct accountancy fees as a business expense if you are a sole trader or partnership, but not if you are a personal PAYE taxpayer. The rules vary depending on your tax entity and the exact purpose of the accounting work completed.

| Taxpayer Entity | Deductibility Status | Permitted Deductions |
| --- | --- | --- |
| Sole Traders | Fully Allowable (Business portion) | Business accounts prep, trade tax advice, bookkeeping, VAT services. |
| Partnerships | Fully Allowable (Business portion) | Partnership tax returns, payroll, partnership accounts preparation. |
| Individual PAYE Employees | Not Allowable | Personal tax returns, personal buy-to-let landlord tax returns without trading status. |

## What is the legal basis for claiming accounting fees against tax?

The statutory authority for deducting accountant fees on a UK tax return lies in Section 34 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005).

Under **ITTOIA 2005 s.34**, expenses are only deductible from taxable trade profits if they are incurred **wholly and exclusively** for the purposes of the trade. This means any fees allocated to personal matters, such as non-business income sources, fail this statutory test and cannot be claimed.

For self-employed taxpayers, HM Revenue and Customs formally supports this statutory basis in the **HMRC SA103F Notes 2026**. This official guidance notes that accountancy, legal, and other professional fees are to be recorded in **Box 28** "Accountancy, legal and other professional fees" of the self-employment full tax return.

## What accountant fees can I claim on my tax return?

You can claim all fees representing the general run of business accountancy, VAT compliance, bookkeeping, and payroll management.

- **Annual business accounts preparation**: The costs of compiling your sole trader profit and loss accounts.
- **Trade tax advice**: Fee allocations for calculating your business capital allowances or trade-related tax liabilities.
- **Bookkeeping services**: Fees paid to external accountants or bookkeepers for keeping trade ledgers accurate during the year.
- **Payroll and workplace pension administration**: Fees paid to manage business staff payroll obligations and HMRC PAYE returns.

## What accountant fees can I not claim on my tax return?

You cannot claim expenses that are personal in nature or linked to capital transactions that fall outside regular trading expenses.

- **Personal tax affairs**: Professional costs for calculating your private capital gains, personal investments, or PAYE salary obligations.
- **Inception and corporate setup fees**: Costs of incorporating a limited company, which are treated as capital in nature and not trading expenses.
- **Exclusively private disputes**: Legal or professional fees to settle disputes that do not belong to the trading activities of the business.

## How do I claim accountant fees on my self assessment tax return?

To claim your business accountant fees, you must declare them within the professional fees section of your annual tax self-assessment.

1. **Review your accounting invoices**: Identify and separate the allowable business fees from any non-allowable personal tax return preparation costs.
2. **Locate the self-employment page**: Open the SA103F Self-employment (full) section on your digital or paper tax filing.
3. **Enter the cost in Box 28**: Insert the total allowable professional fee costs under "Accountancy, legal and other professional fees."
4. **Archive your evidence**: Retain your accountant's detailed invoices and proof of payment for at least five years after the January filing deadline to ensure HMRC compliance.

## How much tax will I actually save by claiming accounting fees?

Your total tax savings depend directly on your marginal tax band, as the deduction reduces your taxable profits rather than wiping out your tax bill pound-for-pound.

| Income Tax Band | Example Accountant Fee | Estimated Income Tax Saving |
| --- | --- | --- |
| Basic Rate (20%) | £500 | £100 |
| Higher Rate (40%) | £500 | £200 |
| Additional Rate (45%) | £500 | £225 |

## What is the 2025/26 Self Assessment filing deadline?

The statutory deadline for submitting your online 2025/26 Self Assessment tax return is **31 January 2027**.

According to official GOV.UK Self Assessment guidance, this date is also the deadline for paying any remaining balance of tax owed for the 2025/26 tax year, which runs from 6 April 2025 to 5 April 2026. Failing to file or pay on time will result in automatic penalties from HMRC.

### Can I claim accountant fees on personal tax return UK?

No. Under the ITTOIA 2005 s.34, fees for preparing a personal tax return do not meet the "wholly and exclusively" test for trading purposes and cannot be claimed as tax-deductible expenses.

### Can I claim CPA fees on my tax return if I am a sole trader?

Yes. If a Certified Public Accountant or chartered accountant prepares your sole trader accounts and business tax filings, their fees are deductible under Box 28 of the SA103F.

### What happens if my accountant's invoice covers both business and personal tax returns?

You must apportion the fee. You can only claim the business-related portion on your tax return, leaving the personal-use portion out of your business expense calculations.

### Can I deduct the cost of setting up a limited company from my taxes?

No. The costs of setting up or incorporating a limited company are classified as capital expenses rather than daily trading expenses, making them non-allowable against sole trader income.