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If you’re starting out as a Contractor or Freelancer, there are a handful of unexpected costs that could easily change your financial plans for the month, so let’s get you prepared.

You may have saved towards a war chest to cover any bumps in relation to financial planning throughout the first few months of your journey as a flexible worker, but what about the hidden costs?

But first, a war chest is typically a reserve pot of money for rainy days, gaps in employment, or financial cover for breaks due to holidays, sickness or maternity/paternity.

We round-up the hidden costs you should think about:


If you’re renting office space or using a co-working office, keep in mind car parking charges, or permits which may be required for car parking. This can typically be claimed as an expense if it does not serve a dual purpose, which means serving both business and personal needs.


If you’re a home office worker, extra costs generated through electricity should be considered. If you require any specialist equipment, including a work phone as it may need charging, this will contribute towards your electricity costs.

If you’re wondering whether you can claim your mobile phone as an expense, it’s worth noting the expenses section of our Limited Company Guide.

Mobile Phone – The costs incurred for one mobile phone, per employee, is claimable and will be deductible for the purpose of corporation tax. This covers the cost of the mobile phone itself, line rental and call costs.

This expense can only be claimed if the contract is between the provider and the company, and all bills should be addressed to the company. All payments should be made from the company bank account.

As a Contractor, it’s also worth keeping an eye out on legislative changes announced in the annual budget as measures suggested within this could influence your forecasted costs.

Read Part 2: Hidden costs Contractors should know about.

Gorilla Accounting is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited Company or Umbrella Solution.

If you would like more information, get in touch with our New Business Team by calling 0330 024 0406 or email