Despite the deleterious effect of hardware impairments (HWIs) on wireless systems, most prior works in cell-free (CF) massive multiple-input-multiple-output (mMIMO) systems have not accounted for their impact. In particular, the effect of phase noise (PN) has not been investigated at all in CF systems. Moreover, there is no work investigating HWIs in scalable CF (SCF) mMIMO systems, encountering the prohibitively demanding fronthaul requirements of large networks with many users. Hence, we derive the uplink spectral efficiency (SE) under HWIs with minimum mean-squared error (MMSE) combining in closed-form by means of the deterministic equivalent (DE) analysis. Notably, previous works, accounted for MMSE decoding, studied the corresponding SE only by means of simulations. Numerical results illustrate the performance loss due to HWIs and result in insightful conclusions.