Costs & fees
Are accountant fees tax deductible?
By Kaiser Khan · Updated · 1 source checked
Sole traders and self-employed people
HMRC allows accountancy fees for business reasons, but explicitly excludes the cost of preparing and submitting a sole trader’s personal Self Assessment return.
If a bill mixes business accounts and personal tax work, ask the accountant to split the charges. Claim only the allowable business portion and keep the invoice.
Limited companies
Accountancy fees paid by the company are a deductible business expense for corporation tax purposes. If the company pays for a director's personal tax return, that part can be treated as a benefit in kind, so many directors pay for personal work themselves to keep things clean.
Ask your accountant how they structure it.
What usually does not qualify
Fees for purely personal matters — personal investment or inheritance planning, for example — are not business expenses. Employees generally cannot deduct accountancy fees from their salary either.
When in doubt, the test is whether the cost was incurred wholly and exclusively for the trade.
Do not forget the VAT
Most accountancy firms charge 20% VAT on their fees. If your business is VAT-registered and the fees relate to the business, you can normally reclaim that VAT, which further reduces the true cost of professional help.
People also ask
Are bookkeeping fees deductible too?
Yes — bookkeeping and accounting software costs for the business are allowable expenses in the same way as accountancy fees.
Can I claim accountancy fees as an employee?
Generally no. Employees can only deduct expenses that are wholly, exclusively and necessarily incurred in doing the job, and personal tax return fees rarely meet that test. Sole traders and companies have much wider scope.
Do I need to keep the invoice?
Yes. HMRC can ask for evidence of any expense you claim, so keep the invoice and proof of payment with your business records.
Sources
- HMRC: allowable self-employed accountancy costs and exclusions · checked 2026-09-23
This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.