Can I claim professional indemnity insurance as a business expense in the UK?

Yes — professional indemnity (PI) insurance is fully allowable as a business expense for sole traders and self-employed individuals in the UK. It is incurred wholly and exclusively for business purposes. You can also claim other business-related insurance policies such as: - Public liability insurance - Employers' liability insurance (if you have employees) - Business equipment or contents insurance - Cyber liability insurance - Legal expenses insurance You cannot claim the business portion of home contents insurance that covers personal possessions alongside business equipment — you would need to apportion that. But a policy taken out specifically for your business is 100% deductible. Include insurance costs under 'Insurance' on your SA103 return, or under 'Other allowable business expenses'.

  • Professional indemnity insurance is 100% allowable — no apportionment needed
  • Public liability, employers' liability, and cyber insurance are also fully claimable
  • Business-specific policies: claim in full
  • Mixed personal/business policies: claim only the business-use proportion
  • Include under 'Insurance' on your SA103 Self Assessment return

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