The basic rule
An expense is allowable if it's incurred wholly and exclusively for your business. If something is used both privately and for work, you can claim the business proportion only — for example, 40% of your phone bill if 40% of use is for work.
You can't claim the cost of anything you use only privately, and capital items (such as equipment you keep) are usually claimed through capital allowances or, if you use cash basis, as an expense.
The checklist
| Category | Examples you can usually claim |
|---|---|
| Office and admin | Stationery, postage, printing, software subscriptions, business phone and internet (business share) |
| Travel | Fuel, parking, train and bus fares, hotel stays for business trips (not the commute to a permanent workplace) |
| Vehicles | Running costs (business share) or HMRC's simplified mileage rates |
| Stock and materials | Goods bought to resell, raw materials, direct costs |
| Premises | Rent, business rates, utilities and insurance for business premises |
| Staff | Wages, employer NI, pension contributions, subcontractor costs |
| Professional fees | Accountants, solicitors, professional body subscriptions, business insurance |
| Marketing | Website costs, advertising, business cards |
| Clothing | Uniforms, protective clothing and costumes — not everyday clothes |
| Financial costs | Bank charges, interest on business loans (within limits) |
| Training | Courses that update existing skills for your business |
Useful tool
See how your expenses change the bill with the Self Assessment calculator.
Working from home
You can claim a proportion of household bills based on the space and time used for work, or use HMRC's simplified flat rates based on hours worked at home each month. The flat rate is easier; the actual-costs method can be worth more if you use a dedicated room.
What you can't claim
- Everyday clothing, even if you only wear it for work.
- Your normal commute to a regular place of work.
- Client entertainment and hospitality.
- Fines and penalties (including HMRC penalties).
- Personal living costs and the non-business share of mixed-use costs.
Expenses or the £1,000 trading allowance?
If your actual expenses are less than £1,000, you can deduct the £1,000 trading allowance instead. You can't claim both. If your expenses are higher, claim them.
Keep records
Keep receipts, invoices and bank statements for at least five years after the 31 January filing deadline. From April 2026, people in Making Tax Digital must keep digital records.
On TaxGo you can upload your figures and supporting documents — spreadsheets, receipts, statements — and we'll organise them into your return's expense categories. More on our self-employed page.
Simplified expenses: vehicles
Instead of working out the business share of your actual vehicle costs, sole traders can use HMRC's simplified mileage rates for cars, vans and motorcycles:
| Vehicle | Rate per business mile |
|---|---|
| Cars and goods vehicles — first 10,000 miles | 45p |
| Cars and goods vehicles — after 10,000 miles | 25p |
| Motorcycles | 24p |
The flat rate covers fuel, insurance, repairs and depreciation, so you can't claim those separately as well. You can still claim parking and tolls. Once you've used the flat rate for a vehicle, you must keep using it for as long as you use that vehicle in the business.
Keep a mileage log with the date, journey and business purpose for each trip — it's the evidence HMRC will ask for.