App Developer

Build your tax knowledge alongside your apps — a guide for self-employed developers.

Allowable Expenses

• Developer Accounts & SDKs — Apple Developer Programme (£99/year), Google Play Console (one-off £20), and other platform developer fees.
• Cloud Hosting & APIs — Firebase, AWS Amplify, Azure, and third-party API costs used in app development.
• Testing Devices — Physical devices (iPhones, Android handsets) purchased specifically for testing your app — deductible via AIA.
• Design Tools — Figma, Sketch, Zeplin, and other tools used to design app interfaces.
• Marketing & ASO — App Store ads, Google UAC campaigns, and App Store Optimisation tools.
• Professional Development — SwiftUI, Kotlin, React Native, or Flutter courses that update your existing development skills.

Tax Tips

• Apple Developer Programme annual fee is a professional subscription — claim it in full each year.
• In-app purchase revenue and subscription income from your apps is trading income — declare all App Store and Google Play earnings.
• If you sell an app rather than generate subscription income, the sale proceeds may be capital rather than income — get advice.
• App development costs (your own time) cannot be capitalised as a sole trader — only your expenses are deductible, not a value for your own hours.

Frequently Asked Questions

Is Apple Developer Programme fee deductible?

Yes. The £99/year Apple Developer Programme membership is a professional subscription directly required for distributing apps on the App Store and is fully deductible.

How do I declare App Store income?

Apple and Google pay your app revenue in USD or local currency. Convert all payments to GBP using HMRC's approved exchange rate on the payment date. Declare the full sterling equivalent as trading income on your Self Assessment return.

Can I claim test devices as equipment?

Yes. Phones and tablets bought specifically for testing your apps qualify for the Annual Investment Allowance. Claim the full purchase price in the year of purchase, adjusted for any personal use proportion.

Are free-to-download apps with ad revenue still taxable?

Yes. Advertising revenue from your apps (AdMob, MoPub) is fully taxable trading income regardless of whether the app itself is free to download. All earnings from any monetisation method — ads, in-app purchases, subscriptions, paid downloads — must be declared.