Self-Employed Tax Deduction Checklist (Freelancers, Contractors, Consultants)
By Farasat Abbas Naqvi · Updated May 22, 2026
This is general guidance, not tax advice — consult a qualified accountant for your jurisdiction. That said, these are the categories self-employed people most commonly miss.
Home office
A percentage of rent, utilities, internet, and home insurance proportional to the workspace area. Most jurisdictions require the space to be used "regularly and exclusively" for work.
Equipment and software
Laptops, monitors, phones, software subscriptions (including invoicing tools), domain names, hosting, design tools. Equipment over a threshold may need to be depreciated rather than expensed.
Vehicle and mileage
Either actual costs (proportional to business use) or a per-mile rate (IRS mileage rate in the US, HMRC AMAP in the UK). Track every trip — odometer photos work.
Travel and meals
Business travel (flights, hotels, ground transport) is generally deductible. Meals are usually 50% deductible and only when work-related; keep the receipt and a note of who you met and why.
Professional fees
Accountant, lawyer, business coach, courses directly related to your trade. Keep invoices, not bank statements — most tax authorities want the underlying invoice as evidence.
Health insurance and retirement
In many jurisdictions, self-employed health insurance premiums and retirement contributions (SEP-IRA, Solo 401(k), SIPP) are above-the-line deductions. Check your country.
Bank and payment fees
Card processing fees on invoices, bank charges, FX losses on international invoices. Easy to miss because they net against revenue rather than appearing as expenses.
The receipts rule
Keep every receipt for at least the statute-of-limitations period in your country (3–7 years typically). Photograph paper receipts immediately; thermal paper fades within a year.
Sending and tracking your own invoices makes this far easier at tax time — every invoice, paid or unpaid, is exportable from ProeInvoice as a single list your accountant can reconcile against your bank.
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Frequently Asked Questions
Can I deduct my home internet bill?
Yes, but only the business-use percentage. If you work from home 5 days a week and 8 hours a day, a reasonable split is 30–50% — document how you arrived at the number.
Do I need paper receipts?
Most tax authorities accept digital scans. The IRS, HMRC, CRA, and ATO all explicitly allow digital records as long as they are legible and retained for the required period.
Is my invoicing software deductible?
Yes — software subscriptions used for the business are an ordinary and necessary expense. ProeInvoice is currently free, so there is nothing to deduct, but billed plans elsewhere are deductible.