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Can I claim ChatGPT as a business expense in the UK?
Short answer
Usually, yes. If you're self-employed and use a ChatGPT, Copilot or similar subscription for your business, GOV.UK treats subscriptions related to the business as allowable expenses. If you also use it personally, claim only the business share. You can't claim expenses if you use the £1,000 trading allowance instead. Keep the invoices.
Sole traders
GOV.UK says you can deduct running costs from your turnover as long as they're allowable expenses, and gives subscriptions and website costs as examples. An AI tool you use to write quotes, answer customers or do admin fits that.
Mixed use: GOV.UK's rule for things used both personally and for business is that you can only claim the business part. If you use ChatGPT Plus about 70% for work, claim 70%. Pick a reasonable method and stick to it.
Trading allowance: if you claim the £1,000 tax-free trading allowance, you can't also claim expenses.
Limited companies
A limited company can deduct business costs before Corporation Tax. If the company pays for a subscription you use personally too, talk to your accountant about whether it becomes a benefit.
VAT
If you're VAT-registered, you can generally reclaim VAT only when you have a valid VAT invoice showing VAT charged for a business purchase. AI providers handle VAT differently, and many bill in US dollars. OpenAI's help centre has a process for VAT exemption requests for business customers. Check what your invoice shows before you reclaim anything.
Where to find the invoice
In ChatGPT: profile icon, Settings, Account, then manage your subscription to view invoices. The email that receives receipts may differ from your login email.
Is it worth paying for at all?
Use our AI tool break-even calculator to compare the cost with the hours it saves. Tax relief reduces the cost; it doesn't make an unused subscription worthwhile.
Related questions
Can I claim a free tool?
There's nothing to claim if you don't pay. Free plans are often enough; see is ChatGPT free in the UK?
Do I need receipts?
Yes. Keep the invoice or receipt for every subscription payment with your business records.
Sources
- GOV.UK: Expenses if you're self-employed
- What is ChatGPT Plus? Billing and invoices (OpenAI Help Center)
Checked 17 October 2026. Rules and prices change, so check the source before you rely on it. This is general information, not legal, tax or financial advice.
More on ai costs and free plans
- Are AI tools free?
- Can ChatGPT Plus make videos?
- Can more than one person use ChatGPT Plus?
- Does ChatGPT Plus have usage limits?
- Does Claude have a free trial or a family plan?
- Does DeepSeek have a paid version?
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