If you are self-employed, you may be able to claim tax relief on certain business insurance costs as an allowable expense. This means the cost can be deducted when calculating your taxable profits, reducing the amount of tax you may need to pay.
The insurance must relate to your business activities and be incurred wholly and exclusively for business purposes. For example, professional indemnity insurance premiums can be claimed as an allowable business expense where they protect you against claims arising from your work. Other professional costs, such as fees paid to accountants, solicitors, surveyors and architects, may also qualify where they relate to business activities.
You cannot claim relief for costs that are personal in nature or unrelated to your trade. It is important to keep invoices, receipts and other records to support any claims made.
Keeping accurate records of business insurance and professional costs will help support your claim and ensure that you only claim expenses that are allowable. If you are unsure whether a particular cost qualifies for tax relief, you should check HMRC’s guidance or seek professional advice.
