Contractor Expenses Calculator 2025/26
Enter your annual business expenses and see exactly how much each one saves in corporation tax. Unlike personal expenses, these reduce your company’s taxable profit before tax is calculated — making them worth 19–25% more than the nominal cost.
What can a limited company contractor claim?
HMRC allows limited companies to deduct expenses that are “wholly and exclusively” incurred for business purposes. Common allowable expenses include accountancy fees, business software, professional insurance, equipment, travel to temporary workplaces (not your home-to-office commute), and training to maintain existing skills (not to acquire new qualifications from scratch).
The use of home as office can be claimed either as a flat rate (£6/week = £312/year, no receipts needed) or based on actual proportionate costs. For a contractor working from home frequently, the actual cost method often yields £500–800/year.