Starting a new business? Get 40% off our accountancy services for 3 months! 😎


Starting and running a business can mean you incur all sorts of legal costs, from drawing up contracts to hiring a surveyor. The good news is that lots of the legal costs you’re likely to have during the course of business are allowable expenses, so you can deduct them from your profits to claim the amount back against your tax bill.

You can claim tax relief on most legal expenses as long as they are ‘wholly and exclusively’ for the business, and directly relate to it. If an expense is for both business and private use, you can only claim for the business portion of it on your tax return.

Sadly you won’t be able to claim relief on legal costs arising from a dispute with HMRC, and this includes any fines or penalties you receive!

Businesses pay tax on the amount of profit that they make, so deducting allowable expenses from your total income means there’s less profit, and therefore less tax to pay. When you submit a tax return for your business you’ll be able to tell HMRC about the total amount of income it received, as well as the amount of expenses you’re claiming, and they’ll work out the profit figure you need to pay tax on.

Comprehensive tax return services

From only £24.50 per month

Learn more

If you have legal costs which result from buying property or equipment then these are considered to be part of the asset’s purchase price. This means that rather than claiming the expense as a one off, you can claim capital allowances over the lifetime of the asset being in your business.

Claiming expenses can be complex. Our teams of accountants can help! Talk to an advisor to get started by calling 020 3355 4047, or get an instant online quote.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Notify of
Inline Feedbacks
View all comments

Read more posts...

Maternity Pay for Self-Employed People

Being self-employed can offer the kind of freedom and flexibility many of us dream about. But if you’re looking to start or…

Read More

What are Payments on Account?

Payments on account are a type of advance payment that you might need to make towards your Self Assessment tax bill. In…

Read More

Staff Spotlight: Aaron Parkinson, Semi-Senior Accountant

This month we spoke to Aaron Parkinson, Semi-Senior Accountant at The Accountancy Partnership! Give an overview of the duties, functions and responsibilities…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.