Allowable expenses for UK tattoo artists

The "wholly and exclusively for the purposes of the trade" test under s.34 Income Tax (Trading and Other Income) Act 2005 is the gate every expense must pass. Most day-to-day tattoo costs pass it easily. Some categories (training, travel, food, clothing) are the recurring grey areas where HMRC pushes back. This guide describes what to claim, what to avoid, and how to handle the capital allowances on bigger kit.

The "wholly and exclusively" test

For an expense to be allowable, it must be incurred wholly and exclusively for the trade. The dominant test:

• Wholly, the entire amount was for business purposes.
• Exclusively, there was no significant private benefit.
• For the trade, connected to the business, not preparing to enter a new trade.

Mixed-use expenses (phone, home internet, vehicle) can be apportioned, claim the business proportion, evidence the apportionment.

Day-to-day allowable expenses

These pass the test routinely:

Consumables and procedure supplies

• Ink, every bottle in your kit.
• Needles, cartridges, grips, tubes, single-use disposables.
• Stencil paper, thermal transfer fluid, stencil printer ink.
• Barrier film, clip-cord covers, machine bags.
• Gloves, aprons, masks, eye protection.
• Razors, antiseptic wipes, skin preparation.
• Aftercare products you supply to clients.
• Couch roll, paper towels, hand soap.

Premises and occupancy

• Chair rent or studio rent.
• Business rates (if studio owner).
• Utilities (electricity, water, gas) for the studio.
• Cleaning supplies and cleaning contractor fees.
• Clinical waste contractor fees.

Insurance and registration

• Public liability, treatment risk, professional indemnity, employers' liability, contents, all the covers in the insurance section.
• Council registration / licence fees (England and Wales) or licensing fees (Scotland).
• ICO data protection fee.

Marketing and admin

• Website hosting and domain.
• Booking system subscription.
• Social media advertising.
• Photography and printing for portfolio.
• Business cards, flyers, signage.
• Accountant and bookkeeping software.

Training and CPD

• Bloodborne pathogens and infection control courses.
• First aid training.
• CPD courses in technique, anatomy, business.
• Convention attendance fees (where attending to develop your craft, not just attending socially).

HMRC's Business Income Manual BIM35660 draws a line between skill-update training (allowable, keeps existing trade skills current) and new-trade training (not allowable, preparing to enter a new trade). Microblading training for an established tattoo artist is usually allowable as it extends an existing skin-procedure trade; tattoo training for a complete beginner before they start trading is usually not allowable because it precedes the trade.

Health and safety

• Hep B vaccination course.
• Personal protective equipment beyond procedure PPE.
• First aid kit and replenishment.
• COSHH-related materials and supplies.

Convention and guest-spot costs

• Booth or chair rental at conventions.
• Travel to conventions.
• Accommodation while away from home for business (subject to rules).
• Subsistence on overnight business trips (subject to rules, see "food" below).

Professional fees

• Accountant fees.
• Legal fees for business matters.
• Trade association memberships (where they support the trade).

The recurring grey areas

Clothing

General rule: everyday clothing is not allowable, even if worn to work. The "wholly and exclusively" test fails because clothing has an inherent dual purpose (warmth, decency). The case law on this is well-established.

Allowable:

• Branded studio uniform if it's clearly identifiable as workwear and not suitable for street wear.
• Specific PPE, gloves, aprons, eye protection.
• Steel-toed boots if specifically required for work.

Not allowable:

• Jeans, t-shirts, hoodies, regular shoes, even if worn only at work.
• "Black clothing for client photos", if it's wearable outside work, it's dual purpose.

This is one of HMRC's standard areas of enquiry. Claiming everyday clothing as an expense is a fast route to an enquiry.

Food

General rule: food is not allowable because everyone has to eat.

Allowable:

• Subsistence on overnight business trips (e.g. travelling to a convention out of town).
• Refreshments provided to clients during their session (within reason, water, biscuit, tea).

Not allowable:

• Daily lunch at the studio.
• Meals with clients (unless very narrowly entertainment-related, which has its own complications).
• "Snacks to keep me going during long sessions", even if real, dual-purpose test fails.

Vehicle and travel

Two options:

Option A. Actual costs: keep records of all motoring costs (fuel, insurance, repairs, capital allowances on the vehicle), claim the business proportion based on a mileage log.

Option B: HMRC simplified expenses (flat mileage rates):

• Cars and vans: 45p per mile for the first 10,000 business miles in the tax year, then 25p per mile thereafter.
• Motorcycles: 24p per mile.
• Bicycles: 20p per mile.

Most working artists prefer the flat-rate method, simpler, no need for full vehicle bookkeeping. You must use one method consistently per vehicle.

Allowable business journeys:

• Studio to convention or guest-spot location.
• Studio to supplier or trade event.
• Studio to council office for registration or inspection.
• Studio to bank or accountant.

Not allowable:

• Home to your usual studio (this is "ordinary commuting", not allowable).
• Personal trips that incidentally include picking up supplies.

Home office

If you do some work from home (admin, social media, design):

• Flat-rate simplified expenses for home working: £10-£26/month depending on hours.
• Or actual proportion of household bills based on rooms used and time.

The flat rate is simpler and HMRC-accepted. Most artists use this.

Phone and internet

Mixed-use. Claim the business proportion based on a documented sample of use (typically 30-60% for active artists with significant client and booking communication via phone). Keep an apportionment note.

Capital allowances, bigger kit

Under the Capital Allowances Act 2001, larger purchases (kit that lasts longer than a normal trading period, typically over £200-£500 and lasting more than 2 years) are capital rather than revenue expenditure. You claim them through the capital allowances regime, not as a simple expense.

Annual Investment Allowance (AIA):

• 100% first-year deduction on qualifying plant and machinery, up to £1,000,000 per year (the limit for 2025-26).
• Covers tattoo machines, power supplies, autoclaves, lighting, treatment beds, sterilisation kit, computers, furniture.

For most tattoo artists, the AIA covers everything they'll ever buy in capital terms, so the effective treatment is "100% deduction in the year of purchase."

What counts as capital:

• Tattoo machines, especially mid-range and premium rotaries/pens.
• Autoclave (if you operate one).
• Power supplies, foot pedals (the higher-end ones).
• Treatment beds and chairs (significant cost).
• Studio lighting (especially LED task systems).
• Computers, tablets, printer.
• Camera if used for portfolio.
• Significant furniture (reception desks, lockable cabinets).

What's still revenue (claimed in the year of purchase as normal expense):

• Needles, cartridges, ink, disposables.
• Stencil paper, transfer fluid.
• Cheap consumables.
• Software subscriptions.

For full detail see HMRC HS252.

Disposal

When you sell or scrap a capital item:

• Cash received → reduces your capital allowances pool.
• If you've already claimed 100% AIA, the disposal proceeds are a balancing charge added to taxable profit in the year of disposal.

Commonly missed claims

Tattoo artists frequently miss:

• Hep B vaccination course.
• Bloodborne pathogens training certificate.
• Professional photography for portfolio.
• Subscription costs for booking software, scheduling tools.
• Trade association membership.
• Convention travel and accommodation.
• Sponsor and trade-event hosting costs.

If you've not claimed these, your accountant can amend prior returns within the time limits (broadly 4 years from end of tax year for refunds).

What this guide cannot do

The wholly-and-exclusively test is fact-specific. Mixed-use expenses require judgement.

Information, not advice. For your situation, work with an accountant experienced in self-employed creative trades, and read the HMRC self-employed expenses guidance carefully before claiming.