Can I claim health, wellbeing and mental health costs as a sole trader?
Generally no — health and wellbeing costs are personal expenditure and fail HMRC's 'wholly and exclusively for business' test, because they provide personal benefit regardless of their impact on your work. This includes: gym memberships, yoga classes, meditation apps, therapy/counselling (unless a specific work-related condition), massage, vitamins and supplements, and private medical insurance for yourself. However, private medical insurance for your employees (not yourself as a sole trader) is deductible as an employment cost. One exception worth noting: if you have a condition directly caused by your work, treatment costs may be partially allowable — but this is a grey area and HMRC would scrutinise such claims closely. The key principle: your health is personal, even if being healthier makes you more productive at work.
- Gym, yoga, wellness apps, therapy, and private health insurance for yourself: NOT deductible
- Fails the 'wholly and exclusively for business' test due to personal benefit
- Private medical insurance for employees you hire: IS deductible as an employment cost
- Work-caused medical conditions: a grey area — seek professional advice
- Health is personal; productivity benefits are incidental, not sufficient for HMRC