Simple Salary Self-employed Self-employed expenses checklist
Self-employed expenses: what you can claim
What a sole trader can and cannot claim against tax, in plain English, with the rules that catch people out. Use it when you set up your bookkeeping, and again before your tax return.
Usually allowable
- Stock and materials you sell or use in the work.
- Travel for work: fuel and running costs or the flat mileage rate, train and bus fares, parking, tolls, hotels when away overnight. Not travel between home and a regular workplace.
- Office costs: stationery, postage, phone and broadband (the business share), software subscriptions, website hosting.
- Working from home: a share of heating, electricity, council tax and rent, or the simplified flat rate of £10 to £26 a month depending on hours worked at home.
- Staff: wages, employer NI and pension contributions for employees, subcontractor costs.
- Premises: rent, rates, utilities, insurance, repairs for business premises.
- Professional fees: accountant, bookkeeper, solicitor for business matters, professional body subscriptions on HMRC's approved list.
- Marketing: advertising, website, business cards, directory listings, free samples.
- Insurance: public liability, professional indemnity, business contents, business vehicle insurance.
- Bank and finance charges: business account fees, interest on business loans and overdrafts, card processing fees.
- Training that updates or maintains skills you already use in the business.
- Equipment: computers, tools, machinery, vans. Claimed through capital allowances (usually the full cost in the year under the Annual Investment Allowance), or in full as an expense if you use cash basis accounting.
Not allowable
- Clothing, unless it is a uniform, protective clothing, or a costume. A suit is not allowable even if you only wear it for work.
- Ordinary commuting between home and a regular place of work.
- Entertaining clients or suppliers: meals, drinks, event tickets. Staff entertaining is allowed within limits.
- Your own meals, except when travelling for work away from your normal pattern.
- Fines and penalties, including parking fines and HMRC penalties.
- Your own pay or drawings, income tax, National Insurance and your own pension contributions (those get relief separately).
- Training for a new skill or qualification that lets you start a different trade.
- Depreciation in the accounts (capital allowances replace it for tax).
- Private use of anything: only the business share of mixed-use costs is allowable.
Rules that catch people out
- Keep records for five years after the 31 January filing deadline. Receipts, invoices, bank statements and your mileage log. Photos of receipts are fine.
- The £1,000 trading allowance can be used instead of expenses if your expenses are lower: see the trading allowance explained.
- Cash basis is now the default for sole traders: you record income when paid and expenses when you pay them. You can opt for traditional (accruals) accounting if you prefer.
- Payments on account: once your bill is over £1,000 you pay half of next year's estimated bill in advance on 31 January and 31 July. The self-employed tax calculator shows the amounts.
- Making Tax Digital: from April 2026 sole traders and landlords with income over £50,000 must keep digital records and send quarterly updates, with lower thresholds following. See the MTD checker.
- Mixed-use items: a phone used 60% for business can have 60% of its cost claimed. Keep a note of how you arrived at the split.