If you are self-employed, claiming all of your allowable business expenses can reduce your taxable profit and, in turn, the amount of Income Tax you pay. Allowable expenses are costs that are incurred wholly and exclusively for the purposes of your business.
Typical business expenses that can be claimed include office costs such as stationery and telephone bills, travel expenses, business insurance, advertising and marketing, staff costs, stock and raw materials, and the running costs of your business premises. You may also be able to claim the cost of training courses that help you maintain or improve the skills needed for your business.
Where an expense is used for both business and personal purposes, you can only claim the business element. For example, if you use your mobile phone for both work and personal calls, only the business proportion of the bill is allowable.
If you work from home, you may be able to claim a proportion of household costs such as heating, electricity, internet, rent or mortgage interest, provided they relate to business use. Simplified expense allowances allow qualifying claimants to use flat rates for certain expenses, including working from home and business mileage, instead of calculating the actual costs.
If you purchase equipment, machinery or business vehicles, the cost may qualify for tax relief through capital allowances, depending on the accounting method you use.
If you claim the £1,000 trading allowance, you cannot also claim allowable business expenses. Keeping accurate records throughout the year will help ensure you claim all the tax relief you are entitled to while making it easier to complete your tax return.
Source:HM Revenue & Customs | 06-07-2026
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I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions.
Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value.
One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession.
Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals.
Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
