Are professional services fees tax-deductible in the UK?

Generally, yes. Fees paid to accountants, solicitors, consultants, and other professionals for business purposes are allowable revenue expenses. However, legal fees related to capital transactions (like buying property) may be treated differently. Check with your accountant for specific situations.

Can Snyp handle invoices with hourly rate breakdowns?

Yes. Snyp reads itemised invoices and captures individual line items including time entries, hourly rates, and totals. The full detail is stored alongside the original document.

What about solicitor invoices with disbursements?

Snyp extracts the fee amount and any disbursements (such as court fees or search fees) listed on the invoice. These may need to be categorised separately in your accounts, and Snyp preserves the breakdown for your accountant.

Can I reclaim VAT on professional fees?

Yes, if the professional is VAT-registered and provides a valid VAT invoice. Accounting fees, legal fees, and consulting fees from VAT-registered providers all carry reclaimable input VAT. Snyp extracts the VAT amount from the invoice automatically.

Does Snyp categorise different types of professional services separately?

Yes. Snyp distinguishes between accounting fees, legal fees, consulting fees, and IT support costs based on the invoice content, so each one is assigned to the appropriate expense category.

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File every accountant, solicitor, and consultant invoice in seconds

Professional services invoices from your accountant, solicitor, consultant, or IT support provider arrive sporadically and in different formats. They often include complex descriptions, hourly rates, and disbursements. Filing and categorising them correctly takes time and attention you could spend on your actual business.

Forward any professional invoice

Forward the invoice email from your accountant, solicitor, or consultant to Snyp. It extracts the provider, service description, amount, and VAT instantly.

Handle complex invoice formats

Professional invoices often include time entries, hourly rates, and disbursements. Snyp reads multi-line invoices and captures the full breakdown.

Correct categorisation

Snyp distinguishes between legal fees, accounting fees, consulting fees, and other professional services so each invoice lands in the right account.

Sync to your accounting software

Professional service expenses flow into Xero or QuickBooks with the correct nominal code, ready for your year-end accounts.

Common examples

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Accountant's quarterly fee invoice

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Solicitor's invoice for contract review

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IT consultant's monthly retainer invoice

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Business coach or mentor invoice

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Graphic designer freelancer invoice

Tax tips

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Accounting and tax advisory fees are fully deductible business expenses. This includes your annual accounts preparation, bookkeeping fees, and tax return filing costs. Keep all invoices as HMRC may ask for evidence of the amounts claimed.

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Legal fees for business matters such as contract drafting, debt recovery, and employment disputes are generally allowable. However, legal fees related to the acquisition of a capital asset (like buying a business premises) are typically treated as part of the cost of that asset. Discuss the distinction with your accountant.

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If you engage consultants or freelancers, ensure you have proper invoices and are satisfied with their employment status for tax purposes. HMRC's IR35 rules may be relevant if the engagement looks like employment. Your accountant can help assess the situation.

Snyp AI extracting hourly rates and fees from a professional services invoice

Accountant

My clients switched to Snyp and the quality of the data jumped instantly. Clean, structured, zero follow-up emails

Agam Walia, Accountant

Frequently Asked Questions

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Features

Automatic Expense Categorisation - Snyp.ai Receipt Scanner

Expenses

Track Advertising & Marketing Receipts Automatically

Expenses

Track Software & Subscription Receipts Automatically

Who It's For

Receipt Scanning for Accountants

Integrations

Xero Receipt Scanning with Snyp.ai

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