Knowing what you can and cannot claim as a business expense is one of the most valuable things a nail technician can understand. Claimed correctly, your allowable expenses reduce your taxable profit, which means a lower tax bill.
This is a comprehensive breakdown of what HMRC allows, with practical examples for nail techs.
The Golden Rule: Wholly and Exclusively
HMRC allows expenses that are incurred wholly and exclusively for business purposes. If something is partly personal and partly business (like your personal phone), you can usually only claim the business proportion.
You don’t need to keep paper receipts for everything, but you do need to keep a record. Bank statements, digital receipts, and accounting software exports all count. HMRC can ask to see up to six years of records.
Their guidance on record-keeping is available at gov.uk/self-employed-records.
Products and Consumables
The products you use to deliver services to clients are classed as cost of sales and are fully deductible. This includes:
- Gel polish, acrylic powder and liquid, builder gel
- Nail tips, forms, and extensions
- Foils, pigments, nail art supplies
- Files, buffers, cuticle pushers, and other disposable tools
- Sanitising products, gloves, masks, couch roll
- Primer, bonder, top and base coats
Keep a note of what you buy and when. If you buy in bulk, that’s fine, the cost is deductible in the tax year you pay for it.
Equipment and Tools
Larger equipment purchases are treated slightly differently. You can claim these as capital expenditure using the Annual Investment Allowance (AIA), which allows you to deduct the full cost in the year of purchase (up to very high limits most nail techs will never reach).
- UV/LED lamps
- E-file (nail drill) and handpieces
- Sterilising equipment
- Nail desk or station
- Professional chair
- Lighting (ring lights, professional salon lighting)
- Magnifying lamp
The Annual Investment Allowance currently covers up to £1 million of qualifying expenditure per year, which is more than sufficient for the vast majority of sole traders.
Premises Costs
Chair or Booth Rental
If you rent a chair or booth in a salon, the full rental cost is a business expense. Keep your rental agreement and payment records.
Working from Home
If you work from home (or have a dedicated home nail studio), you can claim a proportion of household costs. There are two ways to do this:
- Flat rate method: HMRC allows £10 per month if you work from home 25 to 50 hours per month, £18 for 51 to 100 hours, and £26 for over 100 hours
- Actual cost method: calculate the proportion of your home used for business (by rooms or by floor area) and claim that fraction of rent, mortgage interest, utilities, and council tax
The actual cost method usually results in a larger claim if you have a dedicated nail space. More detail is available in HMRC’s simplified expenses guidance.
Training and Professional Development
CPD and skills training directly related to your work are fully deductible. This includes:
- Nail courses and masterclasses (gel, acrylic, nail art, business skills)
- Workshops with guest educators
- Online training platforms and subscriptions
- Industry event tickets and trade show entry
Note: if training is for a new skill that takes you into a completely different profession, HMRC may not allow it. But anything that maintains or develops your existing nail tech skills qualifies.
Marketing and Digital Costs
- Social media advertising (Meta ads, TikTok ads)
- Website hosting, domain registration, website design
- Photography for your portfolio
- Booking system software (Fresha, Vagaro, Timely, etc.)
- Business cards, flyers, and printed materials
- Email marketing platforms
Professional Fees
- Accountancy and bookkeeping fees (this guide included)
- Professional insurance (nail tech insurance is a must, and it’s deductible)
- Trade body memberships (e.g. The British Beauty Council, BABTAC)
- Legal fees related to the business
Motor and Travel
If you drive to clients (mobile nail technician) or between different work locations, you can claim mileage at HMRC approved rates:
- 45p per mile for the first 10,000 business miles per year
- 25p per mile after that
Keep a mileage log. Apps like MileIQ or simple spreadsheet logs work well. You cannot claim for commuting between home and a regular fixed place of work.
Clothing
Branded workwear or uniforms with your logo are deductible. Standard clothing, even if you only wear it for work, is generally not, as it can also be worn outside of work. This is an area HMRC is strict on.
How to Keep Track
The simplest way to track expenses is to use accounting software that connects to your bank account. Transactions come in automatically and you categorise them. At Simplr, we set clients up with cloud accounting tools as part of our service, so there’s no need to mess around with spreadsheets.
For a straightforward overview of how we support nail techs with their finances, visit our nail technicians page. You might also find our guide to self-assessment for nail technicians useful if you’re approaching your first tax return.
Get the Right Support
If you’re unsure whether something qualifies as a deductible expense, or you want someone to review your setup and make sure you’re not overpaying tax, we’re here to help.
Simplr Accounting works with nail technicians across the UK. Fixed pricing, digital-first, no jargon. Book a free discovery call at simplraccounting.co.uk.