What Expenses Can I Claim as Self-Employed in the UK

If you work for yourself, you probably spend money on things that help you do the job. That could be a laptop, phone bill, fuel, software, tools, insurance or even part of your household bills.

The important question is what expenses can I claim as self-employed without making an incorrect claim. In most cases, you can claim costs that are genuinely linked to running your business. HMRC calls these allowable expenses. They reduce your taxable profit, which can reduce the Income Tax you pay.

This guide explains what normally counts, what does not count and how to deal with costs that are partly personal.

What expenses can I claim as self-employed

You can usually claim the business part of costs such as

• Office supplies and equipment
• Phone, internet and software
• Working from home
• Business travel and vehicle costs
• Stock and raw materials
• Marketing and website costs
• Business insurance and bank charges
• Staff and subcontractor payments
• Relevant training and professional memberships
• Accountancy and legal fees for business work

You cannot simply claim every payment made from your business bank account. The cost must relate to your trade and you need a sensible record showing what you paid for.

You can check the full list in the official HMRC guide to self employed expenses.

How allowable expenses reduce your tax

Allowable expenses reduce your profit rather than reducing your tax bill pound for pound.

Imagine that your business has

• Turnover of £48,000
• Allowable expenses of £12,000
• Taxable business profit of £36,000

Your tax calculation starts with the £36,000 profit rather than the full £48,000 turnover. Other factors, including your Personal Allowance, National Insurance and any other income, then affect the final amount you pay.

It also helps to understand the difference between money coming into the business and the profit left after costs. Our guide to turnover and revenue explains these terms in simple language.

Three checks to make before claiming an expense

Before adding a cost to your accounts, ask yourself three questions.

Was the cost for the business

The expense should have a clear connection to the work you carry out. A web designer buying design software has an obvious business reason. The same person buying a family television does not, even if they occasionally view a client website on it.

Was there any personal use

You can normally claim only the business part of a mixed cost. Suppose your annual phone bill is £720 and you reasonably estimate that 65 per cent of the use was for business. Your claim would be based on the business share rather than the full bill. Your method does not need to be complicated, but it should be fair and consistent.

Can you support the amount

Keep a receipt, invoice, bank record, mileage log or another form of evidence. A card payment on a bank statement may show that money left your account, but it may not explain what you bought. Save the invoice as well where possible.

Can I claim office costs and business equipment

Common office expenses can include

• Stationery
• Printer ink
• Postage
• Business cards
• Small office supplies
• Office rent
• Business rates
• Heating and lighting for separate business premises
• Repairs to business equipment

You may also be able to claim equipment such as computers, printers, cameras, machinery and tools. The way you claim larger items can depend on your accounting method.

Under cash basis accounting, most equipment is normally recorded as an expense when paid for. Cars are treated differently. Under traditional accounting, equipment may need to be claimed through capital allowances.

This is one reason accurate bookkeeping for sole traders matters. A valid cost can still cause confusion when it is placed in the wrong category.

Can I claim my phone, internet and software

Yes, but you should separate business use from personal use where the same service covers both.

You may be able to claim the business share of

• Mobile phone bills
• Home broadband
• Video meeting tools
• Cloud storage
• Accounting software
• Design or editing software
• Customer relationship software
• Cyber security services
• Website hosting
• Domain renewals

A separate business phone contract is easier to track than one shared bill. If you use a personal plan, choose a reasonable method to calculate the work related amount. You could review your calls, data use or working pattern to arrive at a sensible percentage. Software can easily become a forgotten expense because small monthly payments leave through several different platforms.

Review your bank statements and app subscriptions regularly. You may also find our guide to the best accounting software for a sole trader helpful.

What can I claim when working from home

When people ask what expenses can I claim as self-employed, household bills are often the most confusing part. You may use either actual costs or simplified expenses.

Claiming a share of actual household costs

You may be able to claim a reasonable business share of

• Electricity
• Gas and heating
• Council Tax
• Rent
• Mortgage interest
• Home insurance where relevant
• Cleaning
• Internet
• Telephone costs

You cannot normally claim your full household bills just because you answer emails at home.

A reasonable calculation may consider

• How many rooms are in the property
• Which rooms you use for work
• How many hours or days you work there
• Whether the room also has personal use
• Whether each cost genuinely increases because of the business

For example, you use one room out of five for work. You work there four days a week, and your family also uses the room during evenings and weekends.

Claiming one fifth of every household bill would probably ignore the personal use. A time adjustment may be needed. Avoid treating a room as permanently used only for business without getting advice. Exclusive business use can create other tax issues when you later sell the home.

Using simplified home working expenses

Sole traders can use monthly flat rates when they work from home for at least 25 hours a month.

The current rates are

• 25 to 50 hours a month gives a £10 claim
• 51 to 100 hours a month gives an £18 claim
• 101 hours or more a month gives a £26 claim

These rates do not include phone and internet costs. You can still work out and claim the business part of those bills separately.

The HMRC working from home guidance explains the flat rate method.

The easiest method is not always the method that gives the best result. Compare the flat rate with your genuine household costs before deciding.

Can I claim travel and mileage

You can normally claim travel that is necessary for the business.

This may include trips to

• Visit a customer
• Work at a temporary location
• Meet a supplier
• Collect stock
• Attend a relevant event
• Carry out work at a client site

Allowable travel costs may include

• Train, bus and taxi fares
• Flights for genuine business trips
• Hotel accommodation
• Parking
• Tolls and congestion charges
• Vehicle hire
• Business mileage
• Fuel and vehicle running costs under the actual cost method

You cannot claim private journeys, fines or ordinary travel between your home and a permanent workplace.

Simplified mileage rates for 2026 to 2027

For cars and goods vehicles, the rates are

• 55p per mile for the first 10,000 business miles
• 25p per mile after the first 10,000 business miles

For motorcycles, the rate is 24p per business mile.

These rates apply for the 2026 to 2027 tax year. HMRC increased the first rate from 45p to 55p with effect from 6 April 2026.

Once you use simplified mileage for a vehicle, you normally need to continue using that method for the same vehicle while it remains in the business.

Keep a mileage log showing

• Date of travel
• Starting point
• Destination
• Business reason
• Number of business miles

See the current HMRC simplified mileage rates before completing your return.

Can I claim food, meals and accommodation

Your normal breakfast, lunch or dinner is usually a personal cost. Working through lunch does not turn the meal into a business expense. Buying food because you are busy or away from your kitchen is also not enough by itself.

Reasonable meal costs may be allowable when they are linked to qualifying business travel, particularly an overnight business trip. Hotel costs may also qualify when you need to stay away from home for work.

A useful way to think about it is this

• A sandwich bought during your normal working day is usually personal
• Dinner during an overnight client trip may be allowable
• A hotel near a temporary work location may be allowable
• A weekend hotel stay with only a small amount of business activity is unlikely to be fully allowable
• Food bought for personal convenience is not normally claimable

Keep the receipt and note the purpose of the trip. The record should show why the meal or accommodation was necessary for business.

Can I claim clothing

You may claim certain clothing that is clearly needed for the work.

This can include

• Protective clothing
• Safety boots
• High visibility clothing
• A recognised uniform
• Costumes used by actors or entertainers
• Laundry and repair costs for qualifying workwear

You cannot normally claim everyday clothes, even when you only wear them while working. A suit for client meetings is still normal clothing. Trainers worn by a personal trainer may also be ordinary clothing unless the facts show they are specialist protective items. Adding a business logo does not automatically make every item allowable. The real purpose and nature of the clothing still matter.

Can I claim stock, materials and packaging

Businesses selling products can normally claim the cost of goods bought for resale. Makers and tradespeople can usually claim the materials used to complete customer orders.

Examples include

• Stock bought for resale
• Raw materials
• Components
• Ingredients
• Product packaging
• Delivery packaging
• Labels
• Direct production costs

You cannot claim products or materials taken for private use. If you use some stock personally, record the withdrawal so your accounts do not treat it as a normal business cost.

Can I claim marketing and website costs

Most genuine advertising and marketing costs are allowable.

This can include

• Website design
• Website hosting
• Domain fees
• Search advertising
• Social media advertising
• Leaflets and brochures
• Directory listings
• Email marketing tools
• Product photography
• Free samples used for promotion
• Sponsorship where there is a clear business benefit

Client entertainment is different. Meals, hospitality and event tickets for customers are generally not allowable, even when you discuss business during the event. Most business gifts are also disallowed. Small promotional items carrying a clear business advert may qualify in limited cases, but the rules are specific. Get advice before treating gifts as a normal marketing expense.

Can I claim accountancy, legal and financial costs

You can normally claim professional fees that directly support the business.

Examples may include

• Accountancy work for your business accounts
• Bookkeeping services
• Legal advice for business contracts
• Surveyor or architect fees for qualifying business work
• Professional indemnity insurance
• Public liability insurance
• Business bank charges
• Card processing fees
• Interest on business borrowing
• Leasing payments

You cannot claim the repayment of the loan itself. The interest and certain finance charges may qualify, but the capital repayment does not. There is also an easy detail to miss. The cost of preparing your business accounts may qualify, but HMRC does not normally allow the cost of preparing and submitting your personal Self Assessment return. Ask your accountant to separate the services clearly.

Can I claim staff and subcontractor costs

You can normally claim genuine costs of employing people or hiring help for the business.

These may include

• Staff wages
• Bonuses
• Employer pension contributions
• Employer National Insurance
• Agency fees
• Freelancers
• Subcontractors
• Staff training related to the business

The person must carry out real work and the payment should be reasonable. You may pay a spouse or another family member for genuine work, but keep proper records. Record their duties, hours, rate of pay and actual payments. Paying an unusually high wage for a small amount of work may be difficult to defend. You cannot claim private domestic help, such as a nanny or cleaner for your family home, simply because it gives you more time to work.

If you employ staff, our guides to PAYE and payroll numbers explain two common payroll topics.

Can I claim training and professional subscriptions

Training is normally allowable when it improves or updates skills used in your current business.

You may be able to claim

• Refresher courses
• Training on new technology used in your industry
• Courses that update existing professional knowledge
• Business administration training
• Relevant trade journals
• Membership of a relevant trade or professional body

You cannot normally claim training that prepares you to start an unrelated trade or move into a completely new industry.

For example, a working photographer taking an advanced editing course may have a valid business expense. A photographer paying for a plumbing qualification to start a new trade would not normally claim that course against photography income.

Can I claim costs paid before the business started

Some costs paid before your first sale may still qualify. Certain expenses incurred within seven years before trading starts can be treated as if they were paid on the first day of the business. The cost must have been allowable if you had paid it after the business started.

Possible examples include

• Early advertising
• Market research
• Website costs
• Professional advice
• Relevant software
• Small office supplies

Do not assume every start up payment qualifies. Equipment, stock and one off setup costs can have different treatment.

You should also register for Self Assessment when required and keep records from the beginning, not from the date your first tax return becomes due.

What expenses can I not claim

When working out what expenses can I claim as self-employed, remove personal spending and costs specifically blocked by the rules.

You cannot normally claim

• Your own drawings or salary
• Personal shopping
• Everyday clothes
• Normal meals
• Private travel
• Ordinary commuting
• Parking fines and other penalties
• Client entertainment
• Most business gifts
• Loan repayments
• The personal part of mixed bills
• Costs already repaid by someone else
• Expenses claimed through the trading allowance

Taking money from the business for yourself is not an expense. It is simply money you have withdrawn from your own business.

Should I claim expenses or use the £1,000 trading allowance

The trading allowance can reduce qualifying trading income by up to £1,000.

You usually choose between

• Claiming actual allowable expenses
• Using the trading allowance

You cannot normally deduct the trading allowance and then claim actual expenses against the same trading income. Suppose your annual expenses are £350. The £1,000 trading allowance may give a better deduction if you are eligible. If your actual expenses are £4,000, claiming those costs may be more useful than using the £1,000 allowance.

The answer depends on your figures. Read the official HMRC trading allowance guidance before making the choice.

Do I need receipts for self employed expenses

You do not send all your receipts with your tax return, but you must keep records that support the figures.

Useful records include

• Sales invoices
• Purchase invoices
• Receipts
• Bank statements
• Credit card statements
• Mileage logs
• Contracts
• Subscription invoices
• Notes explaining mixed use calculations

HMRC says self employed business records must generally be kept for at least five years after the 31 January submission deadline for the relevant tax year.

You can read the official HMRC record keeping rules for full details.

A separate business account can make life easier, even when it is not legally required.

Good small business bookkeeping also helps you spot missing expenses before the return is prepared.

How do I claim self employed expenses

You report allowable expenses through your Self Assessment tax return.

A practical process looks like this

1. Collect your income and expense records
2. Remove personal spending
3. Split mixed costs fairly
4. Choose actual costs or simplified expenses where a choice is available
5. Compare actual expenses with the trading allowance
6. Place each cost in the correct category
7. Keep the evidence after submitting the return

Check the relevant Self Assessment tax return deadline early.

Leaving the work until January makes missing receipts and mileage much harder to reconstruct.

You can also read our complete guide to HMRC Self Assessment.

Common mistakes that increase the risk of an HMRC query

Many expense errors are not deliberate. They happen because people mix personal and business money or rely on memory.

Watch for these common problems

• Claiming a whole phone or broadband bill without adjusting for private use
• Treating normal commuting as business travel
• Claiming normal clothes because they are worn at work
• Claiming every meal bought during working hours
• Using mileage rates and actual vehicle running costs for the same vehicle
• Claiming the £1,000 trading allowance and actual expenses together
• Entering loan repayments as an expense
• Forgetting small software subscriptions
• Losing records that explain large or unusual costs
• Copying last year’s percentages without checking whether usage changed

Regular bookkeeping prevents most of these issues. It also gives you a more accurate view of cash flow and profit throughout the year.

How Path Accountants helps self employed people claim correctly

Understanding what expenses can I claim as self-employed is easier when every cost is obvious. You may work from home, use one vehicle for family and business journeys, pay subscriptions from different cards and buy equipment before your first customer pays you. Each detail can affect the claim.

Path Accountants can help you

• Review your income and expenses
• Find valid costs you may have missed
• Separate personal and business use
• Compare actual costs with simplified expenses
• Check whether the trading allowance is suitable
• Organise your bookkeeping
• Prepare your Self Assessment return
• Explain your tax position in clear language

We focus on helping you claim what you are properly entitled to, without adding costs that cannot be supported.

You can use our self employed tax calculator for an initial estimate.

For advice based on your own records, book a consultation with Path Accountants.

Conclusion

It depends on purpose, personal use and evidence. A cost should support the business. Any private part should be removed. Your records should then show what you paid and how you calculated the amount claimed. Do this throughout the year rather than just before the deadline. You will have a clearer picture of your real profit, a smoother Self Assessment process and a better chance of claiming every valid expense without taking unnecessary isks.

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