What Expenses Can I Claim as Self-Employed?

Self-employed people can generally claim the allowable costs of running their business when calculating taxable profit. Common examples include office supplies, business phone costs, advertising, insurance, accountancy fees, stock, tools, business travel and the business proportion of household expenses when working from home.

An expense must normally be incurred for a genuine business purpose. Where something is used for both business and personal reasons, only the identifiable business proportion can usually be claimed.

Allowable expenses reduce taxable profit. They do not normally provide a pound-for-pound refund of the amount spent.

Direct answer: Self-employed workers can claim necessary business costs such as office expenses, equipment, stock, staff costs, insurance, marketing, professional fees, qualifying travel, work-related training and part of their home-running costs. Personal spending, ordinary commuting, everyday clothing, client entertainment, fines and the owner’s drawings cannot normally be claimed.

HMRC’s current allowable-expenses guidance applies principally to sole traders and individual members of ordinary business partnerships. Different rules apply to limited companies.

What Counts as an Allowable Self-Employed Expense?

An allowable expense is a business cost that can be deducted when calculating taxable trading profit.

The basic calculation is:

Business income − allowable expenses = taxable business profit

For example, a sole trader with £42,000 of turnover and £12,000 of allowable expenses would normally calculate an initial trading profit of £30,000.

The £12,000 expense claim does not mean HMRC refunds £12,000. Instead, Income Tax and relevant National Insurance calculations are based on the lower profit figure.

A person who has recently started working for themselves should first confirm whether they need to register as a sole trader and begin keeping records from the date trading starts.

Which Self-Employed Expenses Are Usually Allowable?

The following table provides a quick overview.

Whether a particular payment qualifies depends on its purpose, the nature of the business and whether any personal benefit can be separated.

Can Office Supplies and Software Be Claimed?

Self-employed people can normally claim everyday office costs used for their business, including:

• stationery;
• postage;
• printing;
• printer ink;
• notebooks;
• business cards;
• cloud-storage services;
• bookkeeping software;
• invoicing software;
• website tools;
• video-conferencing subscriptions; and
• software licences used by the business.

Phone, mobile and internet bills can also be allowable, but only to the extent that they relate to business use.

For example, if an annual mobile-phone bill is £600 and reliable records show that 60% of the use is business-related, the potential allowable amount would be £360.

A dedicated business phone contract used exclusively for work may be fully allowable. A family mobile plan or home internet package normally needs a reasonable private-use adjustment.

HMRC confirms that office expenses can include phone, internet, stationery, printing and qualifying software, but non-business use must be excluded.

Can a Laptop, Computer or Other Equipment Be Claimed?

A laptop, desktop computer, camera, printer, tools, machinery or other equipment may qualify where it is required for the business.

The method of claiming depends partly on the accounting system used.

When using cash basis accounting:

Cash basis is now the standard accounting method for most eligible sole traders and non-corporate partnerships. Under cash basis, most equipment is treated as a normal business expense when it is paid for.

Cars are an important exception and may need to be dealt with through capital allowances or simplified mileage.

When using traditional accounting:

Under traditional accounting, equipment expected to remain in the business is normally considered through the capital-allowance rules rather than being deducted as an ordinary day-to-day expense.

HMRC’s capital allowances information explains the available reliefs for qualifying plant, machinery and other assets.

Where equipment is used privately as well as commercially, the claim must be reduced to reflect the private use.

For example, a laptop costing £1,200 that is used 75% for business could potentially support a business claim based on £900, subject to the applicable accounting and capital-allowance rules.

What Working-From-Home Expenses Can Be Claimed?

A self-employed person who works from home can normally choose between:

1. claiming a reasonable proportion of actual household costs; or
2. using HMRC’s simplified monthly flat rates.

Claiming actual home-working costs

Possible costs include a business proportion of:

• electricity;
• gas or heating;
• Council Tax;
• rent;
• mortgage interest, but not capital repayments;
• home insurance;
• cleaning;
• repairs affecting the work area;
• broadband; and
• telephone use.

The calculation must be reasonable. Factors may include:

• how many rooms are in the property;
• how many rooms are used for business;
• how much time is spent working there;
• whether the room also has a private use; and
• which costs are actually increased by the business.

For example, a house has five usable rooms and one is used as an office for half of each working day. Simply claiming one-fifth of every household cost may be excessive because the office is not used exclusively or continuously for business.

A more defensible calculation would consider both floor space and time used.

Using simplified home-working expenses

A sole trader can instead use a monthly flat rate where they work from home for at least 25 hours during the month.

The flat rate covers relevant household running costs but does not include business telephone or internet use. The business proportion of phone and internet bills can be calculated separately.

HMRC’s simplified working-from-home rates allow eligible sole traders to avoid detailed household-cost calculations.

Could exclusive business use affect Capital Gains Tax?

Using part of a home exclusively for business may affect eligibility for full Private Residence Relief when the property is sold.

Many home-based business owners therefore maintain some genuine private use of the room. This is a technical area, so significant claims or permanent structural changes should be discussed with a qualified tax adviser.

Can Rent and Business-Premises Costs Be Claimed?

A person renting a separate office, workshop, shop, studio or other commercial premises can normally claim qualifying costs such as:

• rent;
• business rates;
• water rates;
• gas and electricity;
• commercial property insurance;
• security;
• cleaning;
• routine repairs; and
• maintenance.

The cost of buying land or a building is not normally treated as an ordinary business expense. Certain construction, renovation or building-related costs may instead qualify for capital allowances or the Structures and Buildings Allowance.

Private accommodation costs cannot be converted into business expenses merely because the business owner occasionally works there.

What Vehicle and Travel Expenses Can Be Claimed?

Self-employed people can normally claim travel costs for journeys made for business purposes.

Potentially allowable costs include:

• business mileage;
• train fares;
• bus and tram fares;
• taxis;
• flights for genuine business travel;
• parking charges;
• congestion or road-use charges;
• hotel accommodation; and
• meals during qualifying overnight business trips.

Travel between home and a permanent or regular business base is normally treated as ordinary commuting and cannot usually be claimed.

Fines and penalties, including parking fines and speeding penalties, are not allowable even where they arise during a business journey. HMRC distinguishes qualifying business travel from private journeys and ordinary travel between home and work.

What are the simplified mileage rates for 2026/27?

From 6 April 2026, the simplified mileage rates are:

For example, a sole trader driving 12,000 qualifying business miles in a car during 2026/27 could calculate:

• 10,000 miles × 55p = £5,500;
• 2,000 miles × 25p = £500; and
• total simplified vehicle expense = £6,000.

Parking and public-transport costs for separate business journeys may be claimed in addition to simplified mileage.

Once simplified mileage is used for a particular vehicle, the same method must normally continue for as long as that vehicle remains in the business. A person cannot claim mileage and then separately claim fuel, insurance, servicing and depreciation for the same vehicle.

Can actual vehicle costs be claimed instead?

Instead of simplified mileage, a business may calculate the business proportion of actual motoring costs, including:

• fuel;
• insurance;
• repairs;
• servicing;
• breakdown cover;
• vehicle tax;
• leasing charges; and
• hire costs.

The appropriate method depends on the vehicle, accounting basis, private use and whether capital allowances have previously been claimed.

Detailed mileage and journey records should be retained whichever method is chosen.

Can Fuel Be Claimed by a Self-Employed Person?

Fuel can be claimed where the actual-cost method is used and the fuel relates to business travel.

Where simplified mileage is used, fuel is already included within the mileage rate and cannot be claimed again.

A mixed-use vehicle requires a reasonable division between private and business travel. A mileage log should show:

• journey date;
• starting point;
• destination;
• business purpose; and
• number of business miles.

Fuel used for private journeys is not allowable.

Can Meals and Food Be Claimed?

Ordinary food and drink are personal living expenses and cannot normally be claimed simply because they are consumed during the working day.

A self-employed person cannot usually claim:

• a normal daily lunch;
• coffee bought while working;
• food consumed at the usual place of business; or
• household groceries.

Meals may be allowable in more limited circumstances, such as qualifying overnight business travel. HMRC expressly includes meals on overnight business trips among potentially allowable travel costs.

The circumstances of the journey matter. Buying lunch while working from a regular office does not become deductible merely because the receipt was paid through a business account.

Can Stock, Materials and Goods for Resale Be Claimed?

Businesses that sell products can normally claim the cost of:

• stock purchased for resale;
• raw materials;
• components;
• packaging;
• direct production costs; and
• goods used to provide customer services.

For example, an online jewellery seller may claim qualifying costs for beads, metals, packaging and postage materials.

A builder may claim timber, fixings and other materials used on customer projects.

The owner cannot claim goods taken from stock for personal use. Any private use may need to be recorded and adjusted in the business accounts.

Can Staff Wages and Subcontractor Costs Be Claimed?

A self-employed business can normally claim qualifying staff costs, including:

• employee wages;
• employer National Insurance;
• employer pension contributions;
• bonuses;
• agency fees;
• subcontractor payments;
• staff training; and
• certain employee benefits.

The business must comply with payroll, PAYE, minimum-wage and workplace-pension responsibilities where workers are employees.

Payments to genuine subcontractors may be allowable, but the correct employment status must be considered. Calling a worker self-employed in a contract does not necessarily make the arrangement self-employment for tax or employment-law purposes.

The sole trader’s own withdrawals are different. Money taken personally from the business is a drawing, not a salary or deductible staff cost.

Can Advertising and Marketing Costs Be Claimed?

Normal marketing costs are generally allowable where they promote the business.

Examples include:

• website design and hosting;
• search advertising;
• social-media advertising;
• directory listings;
• flyers and leaflets;
• email-marketing software;
• graphic design;
• photography for products;
• public-relations support;
• free product samples; and
• sponsorship with a genuine business purpose.

A self-employed person developing an additional income stream can use the complete UK side-hustle guide to understand the wider registration, tax and reporting responsibilities.

Is client entertainment allowable?

Client entertainment is generally not an allowable expense for Income Tax purposes.

This usually includes:

• customer meals;
• hospitality events;
• sporting tickets;
• supplier entertainment; and
• most business gifts.

The fact that entertaining a customer may help win work does not automatically make the expense deductible. HMRC specifically excludes client and supplier entertainment, event hospitality and most gifts.

Can Business Insurance Be Claimed?

Insurance taken out for business purposes can normally be claimed.

Examples include:

• public liability insurance;
• professional indemnity insurance;
• employers’ liability insurance;
• business-property insurance;
• product liability insurance;
• cyber insurance; and
• specialist trade cover.

A personal insurance policy is not normally deductible merely because the person is self-employed.

Where one policy covers both personal and business risks, the claim should be limited to the identifiable business element.

Can Accountant and Legal Fees Be Claimed?

Professional fees incurred for business purposes may be allowable, including fees paid to:

• accountants;
• bookkeepers;
• solicitors;
• surveyors;
• architects;
• tax advisers; and
• business consultants.

However, not every part of an accountant’s invoice is necessarily allowable.

HMRC states that the cost of preparing and submitting the individual’s Self Assessment tax return is not normally deductible. Fees relating to the preparation of business accounts or other commercial work may qualify.

Legal expenses connected with buying property or machinery may be capital rather than ordinary revenue expenses. Fines for breaking the law cannot be claimed.

Business bank charges, overdraft charges, credit-card fees, loan interest and certain finance charges may also be deductible. Repayment of the original loan capital is not an expense.

Can Training Courses Be Claimed?

Training costs can normally be claimed where the course relates to the person’s existing business.

Allowable examples may include:

• refresher courses;
• industry updates;
• training in new technology used within the existing trade;
• health and safety training;
• software training;
• relevant bookkeeping courses; and
• continuing professional development.

A completely new qualification that prepares someone to begin an unrelated trade may not qualify as an expense of the existing business.

For example:

• a self-employed web developer learning a new programming framework may have an allowable cost;
• a self-employed web developer retraining to become a commercial airline pilot is unlikely to have an expense of the existing web-development business.

Updated HMRC guidance allows training that updates or provides knowledge within the owner’s existing business area, including relevant technological and industry developments.

What Clothing Can a Self-Employed Person Claim?

Allowable clothing costs are restricted.

A person may normally claim:

• protective clothing required for the work;
• uniforms;
• safety boots;
• high-visibility clothing;
• helmets and protective equipment; and
• costumes used by actors or entertainers.

Ordinary clothing cannot normally be claimed even where it is purchased specifically for work.

This restriction can apply to:

• business suits;
• formal shoes;
• ordinary shirts;
• dresses;
• coats; and
• other everyday clothing.

A consultant may believe a suit is essential when meeting clients, but it can still be worn privately and therefore does not normally qualify. HMRC specifically excludes everyday clothing even when it is worn for work.

Can Professional Subscriptions Be Claimed?

A self-employed person may be able to claim:

• subscriptions to relevant trade bodies;
• membership of professional organisations connected with the business;
• trade publications;
• professional journals; and
• specialist industry databases.

The organisation or publication must have a genuine connection to the trade.

Gym fees, political-party payments and private-club memberships cannot normally be claimed. Charitable donations are not ordinary business expenses, although genuine commercial sponsorship can be treated differently.

Can Bad Debts Be Claimed?

A bad debt may be allowable where:

• traditional accounting is used;
• the unpaid amount was previously included in business turnover;
• there is no realistic expectation of recovering it; and
• the amount is calculated specifically rather than estimated generally.

Bad debts are not claimed under cash basis because unpaid customer invoices have not yet been included as income.

A business using cash basis records income only when payment is actually received.

What Expenses Cannot Normally Be Claimed?

Common non-allowable costs include:

• personal purchases;
• the owner’s drawings or personal salary;
• ordinary food and drink;
• regular commuting;
• private vehicle use;
• everyday clothing;
• client entertainment;
• most business gifts;
• fines and penalties;
• personal holidays;
• personal pension contributions as a business expense;
• mortgage capital repayments;
• loan capital repayments;
• childcare and domestic help;
• political donations;
• gym membership;
• depreciation under traditional accounting;
• costs already reimbursed by another person;
• expenses claimed twice; and
• actual business expenses where the £1,000 trading allowance has been chosen.

Paying a personal cost through a business bank account does not make it allowable.

Similarly, describing a holiday as a business trip does not make the whole trip deductible where the main purpose was private. Any identifiable business element would need to be supported by evidence and separated carefully.

Can Mixed Business and Personal Expenses Be Claimed?

Yes, but only the business proportion.

Mobile-phone example

Annual bill: £720
Supported business use: 65%
Potential business expense: £468

Broadband example

Annual broadband cost: £480
Reasonable business proportion: 40%
Potential business expense: £192

Vehicle example

Actual annual running costs: £7,500
Business mileage: 8,000 miles
Total mileage: 20,000 miles
Business proportion: 40%
Potential running-cost claim: £3,000, subject to the chosen vehicle method

The method should be reasonable, consistent and supported by records. Arbitrary percentages can be challenged by HMRC.

Should Actual Expenses or the £1,000 Trading Allowance Be Claimed?

A person with qualifying trading income may be able to use the £1,000 trading allowance instead of claiming actual expenses.

The two methods generally cannot be combined for the same trading income.

Example: trading allowance is more beneficial

Gross income: £6,000
Actual expenses: £350
Trading allowance: £1,000

Using the trading allowance could reduce taxable trading income to £5,000, compared with £5,650 after actual expenses.

Example: actual expenses are more beneficial

Gross income: £12,000
Actual expenses: £4,200
Trading allowance: £1,000

Claiming actual costs could reduce taxable profit to £7,800, compared with £11,000 when using the allowance.

The allowance does not provide an extra £1,000 deduction on top of actual costs. The individual normally chooses one method.

The interaction between the allowance and the HMRC reporting threshold is explained in the guide to the UK side-hustle tax-free threshold.

Can Expenses Paid Before the Business Started Be Claimed?

Some pre-trading expenses incurred before the official start date can be treated as if they were incurred on the first day of trading.

Relief may apply where the expense:

• was incurred within seven years before trading began;
• was incurred for the purposes of the future trade;
• would have been allowable if incurred after trading started; and
• has not already been deducted elsewhere.

Potential examples include qualifying market research, professional fees, insurance or administrative costs.

Capital expenditure and stock may follow different rules. A person should retain invoices and evidence showing how the expense relates to the business.

HMRC’s pre-trading rules can apply to eligible revenue expenses incurred within the seven years before commencement.

How Should Self-Employed Expenses Be Recorded?

A self-employed person should keep clear records of:

• purchase receipts;
• supplier invoices;
• bank statements;
• card statements;
• mileage logs;
• travel tickets;
• contracts;
• software invoices;
• business-use calculations;
• home-working calculations; and
• explanations for unusual or mixed-use expenses.

Receipts do not normally need to be attached when submitting the Self Assessment return. However, evidence must be retained in case HMRC asks to check the figures.

Self-employed records must generally be kept for at least five years after the 31 January submission deadline for the relevant tax year.

Digital copies can be acceptable provided they are complete, accurate, readable and accessible.

How Are Expenses Claimed on a Tax Return?

Allowable expenses are reported through the self-employment section of the Self Assessment tax return.

The return may ask for separate categories such as:

• cost of goods;
• car and travel;
• wages and staff;
• rent and property costs;
• repairs;
• accountancy and legal costs;
• interest and financial charges;
• phone and office costs; and
• other allowable business expenses.

Smaller businesses completing the short self-employment pages may be able to enter a single total-expenses figure, depending on their circumstances and the relevant form.

Anyone earning independent income alongside employment should follow the process for declaring side-hustle income to HMRC.

How Does Making Tax Digital Affect Expense Records?

Making Tax Digital for Income Tax began its mandatory rollout on 6 April 2026.

The current timetable is:

Affected taxpayers must generally use compatible software to create and maintain digital records of business income and expenses and submit quarterly updates.

Digital expense records normally include the date, amount and relevant expense category. The annual tax calculation and payment deadline remain part of the wider Self Assessment process.

Are Universal Credit Expense Rules the Same as HMRC Rules?

Not necessarily.

A self-employed Universal Credit claimant normally reports business income and expenses monthly through the Universal Credit account. The Department for Work and Pensions applies Universal Credit rules, which can differ from the Income Tax rules used by HMRC.

An expense accepted for Self Assessment should not automatically be assumed to be accepted in the same amount or period for Universal Credit.

Self-employed claimants are normally required to submit monthly figures even where there was no income or no expenditure during the assessment period.

Practical Examples of Self-Employed Expense Claims

Freelance graphic designer

Potential claims could include:

• design software;
• business laptop use;
• website hosting;
• cloud storage;
• professional indemnity insurance;
• advertising;
• business phone use; and
• a reasonable home-working amount.

Ordinary clothing, lunches at home and personal streaming subscriptions would not normally qualify.

Self-employed plumber

Potential claims could include:

• tools;
• materials;
• protective clothing;
• public liability insurance;
• van expenses or simplified mileage;
• trade-body fees;
• accountancy costs; and
• relevant safety training.

Private van journeys and parking fines would not qualify.

Online retailer

Potential claims could include:

• stock;
• packaging;
• marketplace fees;
• payment-processing charges;
• postage;
• product photography;
• website costs;
• advertising; and
• storage costs.

Items taken for personal use must be excluded or adjusted appropriately.

Self-employed consultant

Potential claims could include:

• business travel;
• professional subscriptions;
• business insurance;
• accountancy fees;
• software;
• phone use; and
• relevant training.

A business suit, routine lunch and client hospitality would not normally qualify.

Final Answer

Self-employed people can claim the genuine costs of operating their business, including office expenses, equipment, stock, staff, advertising, insurance, professional fees, business travel, relevant training and qualifying home-working costs.

The core principles are:

• the cost must have a genuine business purpose;
• personal expenditure cannot be claimed;
• mixed-use costs must be divided reasonably;
• the same expense cannot be claimed twice;
• simplified expenses and actual costs cannot be combined for the same vehicle or home-running cost;
• the £1,000 trading allowance generally replaces actual expenses rather than supplementing them; and
• records must support every figure reported to HMRC.

Claiming legitimate expenses is part of calculating an accurate taxable profit. It is not a method of obtaining reimbursement for personal spending or reducing tax through unsupported deductions.

Editorial accuracy note: This article provides general UK tax information and does not constitute personalised tax, accounting or legal advice. Expense treatment can depend on the business activity, accounting basis, private use, VAT status and individual circumstances. Complex, high-value or unusual claims should be checked with HMRC or a qualified tax adviser.

Frequently Asked Questions

Can I claim my mobile phone if I am self-employed?

Yes, but only the business proportion unless the phone and contract are used exclusively for the business. A reasonable usage calculation should be retained.

Can I claim my internet bill?

The business proportion of internet costs can normally be claimed. A household broadband bill usually needs to be divided between personal and commercial use.

Can I claim a laptop?

A laptop can normally qualify where it is used for the business. Private use must be excluded, and the accounting treatment depends on whether cash basis or traditional accounting is used.

Can I claim fuel?

Fuel can be claimed under the actual vehicle-cost method. It cannot be claimed separately where simplified mileage is used.

Can I claim mileage from home to work?

Travel from home to a permanent or regular workplace is normally ordinary commuting and is not allowable. Travel from home to temporary customer locations may be treated differently depending on the business pattern.

Can I claim lunch while self-employed?

An ordinary working lunch is normally a personal expense. Meals may qualify in restricted circumstances, such as qualifying overnight business travel.

Can I claim work clothes?

Uniforms, costumes and necessary protective clothing may qualify. Everyday clothing, including suits and ordinary shoes, cannot normally be claimed.

Can I claim coffee while working?

Coffee and other ordinary refreshments are generally personal living costs. Paying through the business account does not automatically make them deductible.

Can I claim my accountant’s fees?

Business-related accounting and bookkeeping fees may be allowable. The part relating specifically to preparing the owner’s personal Self Assessment return is not normally deductible.

Can I claim business insurance?

Yes. Public liability, professional indemnity and other genuine business insurance policies are normally allowable.

Can I claim a gym membership?

A normal gym membership is not usually an allowable self-employed expense, even where physical fitness is helpful for the work.

Can I claim rent if I work from home?

A reasonable business proportion of rent may be claimed, or simplified home-working rates may be used. The calculation must reflect the space and time used commercially.

Can I claim mortgage payments?

Mortgage capital repayments are not allowable. A reasonable business proportion of mortgage interest may qualify when calculating actual home-working costs.

Can I claim client meals?

Client entertainment is generally disallowed, even where the meeting has a commercial purpose.

Can I claim expenses without receipts?

A missing receipt does not automatically make a genuine expense impossible to claim, but the business must retain sufficient evidence to support the cost. Bank records, invoices, contracts or replacement receipts may help. Unsupported estimates create a greater risk of challenge.

Can I claim both actual expenses and the £1,000 trading allowance?

No. A person generally chooses either the trading allowance or actual allowable expenses for the same trading income.

Can allowable expenses create a business loss?

Yes. Where allowable expenses exceed business income, the trade may produce a tax loss. How that loss can be used depends on the circumstances and the applicable loss-relief rules.

About Amelia Roberts

An analytical writer and researcher who combines data-driven insights with clear storytelling. Focused on identifying key developments, evaluating industry changes, and presenting valuable perspectives for a broad audience.

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