Can I claim expenses for apps and online tools I use for work?

Can I claim expenses for apps and online tools I use for work?

Apps and online tools have become as normal for many jobs as a desk, a phone, or a laptop. Designers pay for creative software, consultants subscribe to video conferencing and scheduling tools, tradespeople use invoicing apps, and employees might use a cloud storage plan or a password manager to keep work information secure. If you’re paying for these tools yourself, it’s natural to wonder whether you can claim the cost as a work expense and reduce your tax bill.

The answer is often “yes, sometimes,” but the details matter. The biggest factors are (1) whether you’re self-employed or employed, (2) whether the tool is used wholly and exclusively (or mostly) for work, and (3) who is actually paying and who benefits. This article breaks the topic down in practical terms: what typically qualifies, what usually doesn’t, how to deal with mixed personal and business use, and how to keep records so that if you do claim, you can support it.

Why apps and online tools can count as expenses

From a tax perspective, apps and subscriptions are usually treated like other recurring business costs: you pay money to run your work, provide a service, or generate income. If the expense is genuinely connected to your work and not mainly personal, it can often be deductible. In most cases, apps and online tools fall into a few broad categories:

Software subscriptions: creative suites, accounting software, project management tools, code repositories, time tracking apps, and customer relationship management systems.

Digital services: web hosting, domain names, email hosting, e-signature tools, cloud storage, online meeting platforms, automation tools, and online security services.

Digital content used for work: stock photos, fonts, templates, digital asset libraries, and research databases.

Professional platforms: portfolio hosting, marketplace fees, paid listings, and paid professional networking features that directly support income generation.

Whether you can claim these costs usually depends on your work structure and how closely the tool is tied to earning your income.

The first big question: are you self-employed or employed?

Tax rules generally treat self-employed people and employees differently when it comes to deducting work-related expenses. Before you even look at the app, clarify which bucket you’re in.

If you’re self-employed

If you’re a sole trader, partner, or you run your own small business, you usually have more flexibility to claim business expenses, including software and online tools—provided they are used for business purposes. For many self-employed people, software is a clear business cost: it supports your operations, administration, communication, or delivery of your service.

However, self-employed claims still need to follow a core principle: the expense must be for business, not personal enjoyment or private convenience. If the app is partly personal, you usually need to apportion the cost and claim only the business portion.

If you’re employed

If you’re an employee, it can be harder to claim for apps and tools you choose to buy yourself. In many systems, employees can only claim costs that are necessary for their job and that they’re required to pay personally, with no reimbursement available. If your employer would normally provide the tool, or if the tool is optional rather than required, the claim may not be allowed.

That doesn’t mean employees can never claim. If you must purchase a tool to do your job properly and your employer does not reimburse you, you may have a case. But the threshold for “necessary and required” tends to be stricter for employees than for the self-employed.

What typically counts as a claimable app or online tool?

While every situation is different, certain types of tools tend to fit cleanly into “work expense” categories—especially for self-employed people and for employees in roles where the tool is truly required. Here are common examples that often qualify when used for work.

Accounting, invoicing, and tax tools

Tools that help you track income and expenses, send invoices, accept payments, manage receipts, and prepare financial reports are strongly connected to running a business. These expenses are usually straightforward to justify for self-employed individuals and small business owners.

Examples include bookkeeping subscriptions, receipt capture apps, payment processing tools (and their fees), and time tracking software used to bill clients.

Project management and productivity tools

If you manage projects, collaborate with clients, or run workflows, subscriptions for task managers, planning tools, document collaboration, and internal knowledge bases can be legitimate work expenses. This is especially true when these tools are actively used to deliver client work or manage business operations.

Examples include project boards, team chat apps used for clients, note apps used for client work, and calendar scheduling tools used for meetings and bookings.

Communication tools

Video conferencing, call recording (where legal and used appropriately), virtual phone systems, and email hosting are often a core part of many businesses. If the subscription supports client calls, remote delivery, or customer support, it can be a business expense.

Be cautious about claiming broad consumer subscriptions that are not clearly tied to work. A tool with a clear work function and a record of use is generally easier to support than something that’s primarily personal entertainment with an occasional work call.

Security and compliance tools

Password managers, multi-factor authentication subscriptions, encrypted storage, backup services, antivirus tools, and other security services can be essential for protecting business data. If you store client information, handle payments, or deal with confidential materials, security tools have a strong business rationale.

In industries where compliance and privacy standards matter, being able to explain why you need the tool can be just as important as the receipt itself.

Design, development, and specialist tools

Specialist software is often the clearest example of a business expense: creative suites, CAD tools, development environments, code hosting, testing platforms, and data analysis subscriptions. If you use the tool to deliver paid work, it’s usually easy to show the connection between the cost and your income.

For example, a freelance designer paying for design software to create client deliverables is typically a straightforward case. Similarly, a developer paying for a code repository or deployment tool used for client projects can often justify the expense.

Online learning tools and research databases

Learning platforms and professional research subscriptions can sometimes qualify if they maintain or improve skills directly related to your current work. The key is relevance and continuity: training that supports what you already do is often easier to justify than training that prepares you for a brand-new field.

For instance, a marketing consultant subscribing to a data analytics course to improve current services may have a stronger argument than someone taking an unrelated course with only a distant connection to their work.

What usually does not count, or is harder to claim

Some apps and subscriptions sit in a grey area or are commonly rejected because they are mainly personal, too general, or not sufficiently required for the job. Even if you sometimes use them for work, tax authorities often look at the primary purpose and whether the expense is incurred “because of” work rather than simply “while working.”

General consumer subscriptions

Music streaming, video streaming, general news subscriptions, or broad consumer apps are typically personal, even if you listen or watch while working. Exceptions can exist if the subscription is genuinely required for your business activity (for example, a media reviewer or a content producer needing access to specific services). But for most people, these are personal expenses.

Devices and hardware disguised as “apps”

Sometimes the biggest cost isn’t the app; it’s the device needed to run it. The treatment of hardware can differ from subscriptions. Devices may be treated as capital assets (depending on local rules), with different methods for claiming their cost. Don’t assume that because an app subscription is an expense, the phone or tablet used for it is treated the same way.

Tools used mainly for personal life administration

A personal budgeting app, a fitness subscription, a family organizer, or a general cloud storage plan used primarily for personal photos may not be claimable—even if you also store a few work documents. If the work use is minor, it can be difficult to justify.

Optional “nice-to-have” upgrades for employees

If you’re employed and you upgrade to a premium plan mainly for convenience rather than necessity, you may have trouble claiming it. For example, paying for a personal scheduling tool when your employer already provides a corporate calendar solution can be considered optional.

The more the expense looks like a personal preference rather than a job requirement, the weaker the claim tends to be.

Mixed use: how to claim when you use the tool for work and personal life

Many apps are used for both work and personal life. Think of cloud storage, note apps, password managers, phone plans, or even AI writing tools used for both client drafts and personal projects. In these cases, the usual approach is to claim only the business-related portion.

Apportioning the cost fairly

A fair apportionment is one that reflects how the tool is actually used. Common methods include:

Time-based split: If you use a tool 60% for client work and 40% personally over a representative period, you might claim 60% of the cost.

User-based split: If you have separate user accounts—one for business and one for personal—then the business account is easier to claim.

Feature-based split: Some tools have add-ons or modules used only for business (for example, a team plan, a business analytics module, or a client-facing booking feature). If you can isolate business-only components, you can often claim those more clearly.

Whatever method you use, consistency matters. If you claim a percentage, try to keep a short explanation of how you arrived at it. If the tool’s use changes significantly year to year, update the split accordingly.

Separate accounts can make life easier

One of the simplest ways to reduce ambiguity is to keep separate accounts for business and personal use—especially if the subscription is inexpensive and the risk of confusion is high. A dedicated business workspace in a tool, a separate login, or a business-only plan paid from a business bank account can help demonstrate that the cost is work-related.

This isn’t always necessary, and it isn’t always practical, but it can be helpful when your usage is heavily mixed.

Employee scenarios: when a claim is more likely to succeed

If you are an employee, it’s worth thinking about how to frame the “why.” Generally, you’ll be on stronger ground when:

The tool is required to perform core job duties: You need it to complete tasks, communicate, or meet compliance requirements.

Your employer does not provide an alternative: There is no company-issued software or it is unavailable for your role.

You are not reimbursed: You pay out of pocket and there is no reimbursement policy or your employer declines reimbursement.

The cost is not mainly personal: The tool is not something you would reasonably buy if you were not in that job.

In practice, many employees find it easiest to ask their employer to reimburse the cost instead. Reimbursement can remove the need for a claim and reduce personal paperwork. If reimbursement is possible, it’s often cleaner than trying to claim individually.

Self-employed scenarios: common categories you can often claim

If you’re self-employed, apps and tools often fall into familiar categories that align with business operations. Here’s how they’re commonly grouped, which can help you think through whether a tool is part of your business costs.

Administrative and operational tools

These include bookkeeping software, invoicing tools, document signing services, scheduling systems, and email hosting. If the app helps you run the business day-to-day, it’s typically an operational expense.

Marketing and sales tools

Email marketing platforms, landing page builders, social media scheduling tools, ad management subscriptions, analytics services, and customer relationship management tools are all commonly tied to generating revenue. If you use these tools to attract clients or manage leads, they can be part of your marketing or sales costs.

Delivery and production tools

These are tools you use to deliver your service or produce what you sell: design software, video editing tools, development platforms, online course hosting, file delivery services, and specialist industry software. If the tool is essential to producing billable work, it usually has a clear business purpose.

Professional and compliance tools

Industry memberships with digital tools, compliance monitoring software, secure storage, and record-keeping services can be legitimate expenses when they support regulatory requirements or professional standards related to your work.

How tax authorities typically judge whether a digital tool is “for work”

While terminology differs by country, tax authorities generally look for a clear link between the expense and the work you do. Here are questions that often capture the spirit of the tests used:

Would you have bought this if you didn’t do this job? If the answer is “no,” that can support a work-related purpose.

Does it directly help you earn income or run your business? Tools used to deliver services, manage clients, or administer business operations generally have a stronger connection than tools used for general personal productivity.

Is there a personal benefit, and how significant is it? A tool that is equally useful for personal life may need apportionment, or it may be disallowed for employees if it’s not required.

Is the cost reasonable for the role? A modest subscription aligned with your work is easier to justify than a costly package with features you don’t use for work.

Are you double-dipping? If an employer reimburses you, or if the business has already claimed the cost elsewhere, you generally can’t claim it again personally.

The more clearly you can answer these questions in a work-focused way, the safer your position tends to be.

One-off purchases vs subscriptions

Not all apps are monthly subscriptions. Some are one-time purchases, lifetime licenses, or annual renewals. The way you treat these can differ depending on local rules and how large the cost is.

Many small, routine software costs are treated like normal expenses. Larger costs may be treated differently, especially if they create a longer-term asset or provide long-term benefit. For example, an expensive multi-year license might be treated differently from a small monthly subscription. If the amounts are significant, it can be worth getting professional advice so you classify it correctly.

Free trials, discounts, bundles, and app store billing

In the real world, billing isn’t always tidy. You might start with a free trial, get a discounted annual plan, or buy through an app store where the receipt is less descriptive than a direct invoice.

Free trials: No cost means nothing to claim, but once billing starts, the subscription cost becomes relevant.

Discounts: You generally claim what you actually paid, not the “full price” before discount.

Bundles: If a bundle includes both personal and business tools, you may need to split the cost based on what you use for business. If you can’t reasonably split, you may need to claim only the portion you can justify.

App store receipts: App stores sometimes provide generic receipts. Save any documentation that clearly identifies the app and the plan, such as the subscription confirmation email, the app’s billing page, or a receipt that includes the app name and transaction ID.

Record keeping: what you should save

Even if your claim is valid, poor records can create trouble. Good record keeping is your best friend because digital expenses are easy to lose track of, and small subscriptions can add up quickly over a year.

Keep proof of payment and proof of what you bought

At minimum, keep:

Receipts or invoices: Ideally showing the vendor name, date, amount, and what the payment was for.

Subscription confirmations: Emails or account screenshots showing the plan name can be helpful when the receipt is vague.

Bank or card statements: These support that you paid, but they may not fully describe the purchase, so pair them with invoices where possible.

Keep notes for mixed-use tools

If you apportion a cost, keep a short note that explains your reasoning. This doesn’t need to be a novel. A few lines can be enough, such as:

“Cloud storage plan used for client deliverables and personal photos. Business use estimated at 70% based on folder storage size and last 3 months’ usage.”

Or:

“Password manager used for business logins and personal accounts. Claimed 50% to reflect mixed use.”

Reasonable, consistent notes like these can help you stay consistent year to year and support the claim if questioned.

Use a separate payment method for business when possible

Paying for business subscriptions from a dedicated business account or card can reduce confusion. It makes it easier to identify business expenses, reconcile accounts, and avoid missing deductible costs. If you’re just starting out, even a separate card used only for business can make record keeping far easier.

Common real-life examples

Sometimes the easiest way to understand the rules is to see how they apply in everyday situations. Here are a few scenarios and what usually matters in each.

Example: a freelancer pays for a design subscription

A freelance designer pays for a design suite subscription used to create client work. The designer uses it almost entirely for work and can show invoices and projects. This is typically a strong business expense claim.

Example: an employee buys a premium note app

An employee buys a premium note-taking app because they like it better than their employer’s tools. They use it for meeting notes and also for personal planning. This may be difficult to claim because the purchase may be considered optional and partly personal. If the employer didn’t require it and it isn’t necessary, the claim might fail.

Example: a self-employed consultant uses a video meeting platform

A consultant pays for a video conferencing platform to host client calls, record sessions, and schedule meetings. If the subscription is used for client work and has a clear business purpose, it is commonly claimable. If the consultant also uses it for family calls, they may apportion the cost based on usage.

Example: a part-time side business uses a web hosting plan

Someone runs an online store as a side business and pays for a domain, hosting, and an e-commerce app subscription. These costs are closely tied to running the business and are typically treated as business expenses, as long as the store is a genuine income-generating activity.

Example: an AI tool used for both work and personal projects

A writer pays for an AI writing subscription used to draft client content, outline articles, and also generate ideas for personal creative writing. Mixed use is likely. The writer may decide to claim a percentage reflecting business use and keep short notes or evidence (such as project logs or usage patterns) to support the split.

Special considerations for bundled ecosystems

Many people pay for bundles that combine multiple services into one monthly fee: storage, email, VPN, productivity apps, and collaboration features. These are convenient, but they can complicate expense claims if you use the bundle for both work and personal life.

If the bundle is primarily for business and you can show that it’s used to run work systems—client email, file storage for deliverables, team collaboration—it may be easier to justify. If it’s primarily personal and you occasionally use it for work, claiming it can be more difficult.

When the bundle is mixed, consider whether you can:

Upgrade only the business component: Some providers allow add-ons that apply to a work workspace.

Separate your work identity: A business email address and business storage folders can strengthen the business argument.

Apportion reasonably: If you can’t separate, claim only the portion you can justify based on usage.

What about apps that help you get to work or stay healthy for work?

People often ask about apps that support their ability to work indirectly: navigation apps, fitness subscriptions, meditation apps, meal planning, or general wellness tools. Even though these can help you perform better at work, they are often treated as personal expenses because they relate to personal health, commuting, or general life maintenance.

There are exceptions in some cases—particularly when an expense is specifically required by the job or is necessary due to the nature of the work. But in general, “it helps me work better” is not the same as “it is a work expense.” The closer an expense is to personal living, the more cautious you should be.

How to decide: a practical checklist

If you’re unsure about a particular app or online tool, run through this checklist:

1) What is the tool used for, in plain terms?
Write one sentence: “I use this app to do X for clients / manage Y in my business / perform Z in my job.”

2) Is the use directly connected to earning income or doing required duties?
If it’s directly used to deliver work, manage clients, invoice, or meet compliance needs, it’s usually stronger.

3) Is there personal use?
If yes, can you estimate a business percentage? Can you separate accounts or workspaces?

4) Would you still pay for it if you didn’t have this work?
If you would keep it anyway for personal life, claiming may require apportionment or may be disallowed for employees.

5) Do you have good records?
Do you have an invoice/receipt and proof of payment? Can you identify the plan and vendor clearly?

6) Is reimbursement available?
For employees, consider asking your employer to reimburse instead of claiming personally.

This approach won’t replace professional advice, but it will help you think the way a reviewer might think.

Tips to stay compliant and avoid common mistakes

Digital expenses are easy to over-claim accidentally because they feel work-related in everyday life. These habits can reduce risk:

Don’t claim everything just because you used it once for work.
Occasional work use doesn’t always make an expense deductible, especially for employees.

Be consistent with percentages.
If you claim 80% business use for a tool that you also use heavily personally, that can look unrealistic unless you have evidence.

Review subscriptions annually.
You might be paying for tools you no longer use. Canceling unused subscriptions can save money whether or not you can claim them.

Keep your evidence as you go.
Download invoices monthly or quarterly, and label them clearly. Year-end catch-up is where records get lost.

When in doubt, be conservative.
If you’re unsure whether an expense is fully claimable, claiming a reasonable business portion with a short note can be safer than claiming 100% without support.

When it’s worth getting professional advice

If your app and online tool spend is small, you can often handle it with good records and a common-sense approach to business use. But it can be worth professional guidance when:

You have significant mixed use and you’re unsure how to apportion.

You’re moving from employment into self-employment and your tool stack changes quickly.

You have unusually high software costs compared with your income.

You’re claiming expenses in a role where the “required” test is strict and you want confidence.

Professional advice can help ensure the expense is categorized correctly and that you’re applying the right standard for your situation.

Bottom line

You can often claim expenses for apps and online tools you use for work, but it depends heavily on your working arrangement and how the tools are used. Self-employed people typically have clearer pathways to claim business-related subscriptions, especially when the tools directly support income generation or business operations. Employees may be able to claim in some situations, but the tool often needs to be genuinely necessary and not reimbursed.

The safest approach is to treat digital tools like any other expense: claim what is genuinely work-related, split costs fairly when personal use is involved, and keep clear records. If you do that, you’ll not only make any potential claim easier to support, you’ll also gain a better view of what your tools are really costing you—and which subscriptions are truly pulling their weight in your work.