Self-Employed Expenses: What You Can Claim for Tax in the UK
When you are self-employed, as with other types of business, you will have various costs to keep your business running. Many of these expenses qualify for tax relief, often referred to as self employed tax deductions UK, which means you can deduct the value of these expenses from your profits before working out how much tax you owe.
This raises a common question for many business owners: what expenses can I claim self employed.
Self Employed Allowable Expenses List UK
what qualifies for tax relief?
Allowable expenses are business costs that are incurred wholly and exclusively for trading purposes. These are deducted from your profits before tax is calculated. Larger purchases with a longer useful life, such as equipment or vehicles, are usually claimed through capital allowances instead. More expensive items which you are likely to use for more than 2 years can be claimed as ‘capital allowances’.
If you rent property, we have a guide for rental expenses that qualify for tax deductible expenses for self employed.
You will have to report these expenses on your Self Assessment tax return. You can follow this link to read our tips on common mistakes to avoid and understand better what expenses can I claim self employed.
Allowable expenses
You can deduct the full amount of these expenses from your profits before tax. If some of these expenses benefit you personally as well as your business, you will need to decide on a fair way to split the cost when submitting your records to HMRC.
Stationery and goods
You can claim expenses for things like:
- The business proportion of your phone and internet bills. For example, if 60% of your phone use is for business, you can claim 60% of the bill. Keep a record of how you calculated the split.
- Printing.
- Computer software and subscriptions used for business purposes (short-term licences are treated as allowable expenses, while long-term software may qualify for capital allowances).
- Postage.
You can claim the cost of uniforms, protective clothing, and costumes for entertainers. You cannot claim for everyday clothing you wear to work, You cannot claim everyday clothing worn for work purposes.
You can claim for the costs of your stock (goods bought for resale), costs of raw materials, and the costs incurred directly for producing goods.
Rents, power and insurance
You can claim expenses for:
- Rent for business premises.
- Utility bills.
- Property insurance.
- Security.
- Repairs and maintenance for business premises or equipment.
- Using your home as an office
If you use your home as an office, you will have to divide your costs either by the amount of the home used for business, or hours worked in the home.
Car and travel expenses
The following are allowable expenses:
- Vehicle insurance.
- Repairs.
- Fuel for business use.
- Parking.
- Licence fees.
- Train, bus, taxi and air travel fares.
- Hotel rooms.
- Meals on overnight business trips.
You cannot claim fines or costs for traveling between work and home.
If you buy a vehicle for your business, you can claim this as capital allowance, usually in the form of writing down allowance.
Expenses you cannot claim when self-employed
Not all business-related costs qualify for tax relief. HMRC specifically excludes certain expenses, even where they feel business-related.
You cannot claim:
- Everyday clothing, even if worn for work
- Client entertainment or hospitality costs
- Gym memberships or personal wellbeing costs
- Fines and penalties (parking, speeding, etc.)
- Travel between home and a regular workplace
- Political donations
- Any personal or private expenditure not incurred wholly and exclusively for business
Staff expenses
Most costs relating to staff count as allowable expenses, such as:
- Employee salaries.
- Bonuses.
- Pensions.
- Agency fees.
- Employer’s National Insurance.
- Business-related training courses.
You cannot claim for the costs of nannies and domestic help.
Legal costs and financial charges
You can claim costs for legal, professional and bank costs such as:
- Hiring an accountant for your business is an allowable expense.
- Hiring professionals who provide services, like architects or surveyors.
- Overdraft and credit card charges.
- Interest on bank loans.
- Hire purchase interest.
- Insurance policies.
Any legal costs involved in buying property or machinery should be claimed using capital allowances, which we explain further on. This is treated as a tax-deductible business expense.
Pre-trading expenses (expenses before you started trading)
You may be able to claim certain costs incurred before you officially registered as self-employed.
These are called pre-trading expenses and can include:
- Equipment purchases
- Website development
- Initial marketing or advertising costs
- Professional fees (such as accountancy or legal setup costs)
To qualify:
- The cost must be incurred within 7 years before your business started
- It must be something that would have been allowable after trading began
- It must be directly related to setting up your business
These expenses are treated as if they were incurred on the first day of trading.
Marketing and entertainment
You can claim for:
- Advertising – such as in newspapers, mail advertising, free samples, website costs
- Subscriptions to trade or professional journals
- Professional organisation or trade body membership fees related to your business.
However, you cannot claim the following:
- Entertaining clients or suppliers.
- Gym membership fees.
- Payments to political parties.
Capital allowances
Capital allowances allow you to deduct the cost of qualifying assets, such as equipment or machinery, from your taxable profits. These are used for items with a useful life of more than two years.
This includes things like office furniture, computers and printers, tools, and equipment.
Most long-term items, except cars, bought by you for use in your business will qualify for Annual Investment Allowance. This allows you to deduct the full value of an item from your profits before tax for the tax year that the item was bought.
Is there a limit to this tax relief?
You can claim expenses according to the AIA until your total deductions for these long-term items reach the ‘AIA amount’, after which you will have to use ‘writing down allowances’ which are at only 18% or 6% of an item’s value.
The AIA amount has been set at £1 million.
Record keeping requirements for self-employed expenses
HMRC requires you to keep accurate records to support all expense claims.
You must keep records for at least 5 years after the 31 January submission deadline for the relevant tax year.
Acceptable records include:
- Receipts and invoices
- Bank and credit card statements
- Mileage logs (date, journey, purpose, miles)
- Digital bookkeeping records (especially under Making Tax Digital rules where applicable)
If an expense includes both personal and business use, you must also keep a clear record of how the business proportion was calculated.
Common Self-Employed Expense Questions (UK – Practical Scenarios)
Understanding what you can claim is not just about knowing the rules, it is about applying them correctly in real situations. Many expense decisions involve judgement, especially where there is mixed use or unclear boundaries between personal and business costs.
The following scenarios address common areas where mistakes occur and where professional judgement is often required.
Can You Claim a Phone if You Also Use It Personally?
Yes, but only the business-use portion is allowable.
If your phone is used for both personal and business purposes, you must make a reasonable split of the cost. HMRC expects expenses to be incurred wholly and exclusively for business, so claiming the full amount is only appropriate if the phone is used solely for business.
In practice, this means:
- Estimating the proportion of business use
- Applying that percentage consistently
- Being able to explain how you reached that figure if asked
Overstating business use is a common issue and may lead to adjustments if reviewed.
What Mileage Can You Claim as Self-Employed (2025/26)?
If you use your personal vehicle for business journeys, you can usually claim using HMRC’s approved mileage rates:
- 45p per mile for the first 10,000 miles
- 25p per mile thereafter
This simplified method covers fuel, maintenance, and general running costs.
Alternatively, you can claim actual vehicle expenses, but this requires detailed records and a clear business-use calculation. You cannot combine both methods for the same vehicle.
The choice of method should be made carefully, as changing approach later can be restricted.
How Do You Claim Working From Home if You Rent?
If you work from home, you can claim a proportion of your household costs. There are two main approaches:
Simplified method
A flat rate based on hours worked from home. This is straightforward but may not reflect your actual costs.
Actual cost method
A proportion of expenses such as:
- Rent
- Utilities
- Internet
This requires a reasonable method of apportionment, such as by number of rooms or usage. The calculation should be realistic and consistent.
Over-claiming or using arbitrary percentages can increase the risk of HMRC challenge.
Can You Claim Expenses Before Registering as Self-Employed?
Yes. Certain costs incurred before your business officially started can still be claimed, provided they relate directly to your business activity.
These are known as pre-trading expenses and commonly include:
- Equipment purchases
- Website development
- Initial marketing costs
To qualify, the expense must be one that would have been allowable if incurred after trading began. These costs are treated as if they were incurred on your first day of trading.
This is often overlooked, meaning some businesses miss legitimate tax relief.
What happens if HMRC disallows an expense claim?
If HMRC reviews your tax return and disallows an expense, they may adjust your tax calculation.
Possible outcomes include:
- Removal of the expense from your tax return
- Increase in taxable profit
- Interest charges on underpaid tax
- Penalties in cases of carelessness or incorrect reporting
HMRC decisions typically depend on:
- Quality and completeness of your records
- Whether your business-use calculation is reasonable
- Whether the error is considered careless or intentional
Clear documentation and consistent calculations significantly reduce the risk of disputes.
What Happens if HMRC Disallows Your Expense Claim?
If HMRC reviews your return and disagrees with a claim, they may:
- Remove the expense
- Increase your taxable profit
- Apply interest or penalties, depending on the circumstances
In these situations, the outcome usually depends on:
- The quality of your records
- Whether your reasoning is clear and reasonable
- Whether the error is seen as careless or deliberate
Being able to explain how and why you made a claim is often as important as the claim itself.
What Records Do You Need to Keep for Expense Claims?
You must keep records that support each expense you claim. This includes evidence of:
- The amount
- The date
- The business purpose
Typical records include:
- Receipts and invoices
- Bank statements
- Contracts or agreements
For expenses that involve mixed use, you should also document how you calculated the business proportion.
Poor record-keeping is one of the most common reasons expense claims are challenged.
Overview of Allowable Expenses (Quick Reference)
Allowable expenses are costs that are incurred wholly and exclusively for the purpose of running your business. These can be deducted from your income to reduce your taxable profit.
Common categories include:
- Office costs (such as stationery, phone, and software)
- Travel and vehicle expenses
- Staff costs
- Professional fees
- Marketing and advertising
For larger or long-term assets, you may need to claim tax relief through capital allowances instead of treating them as day-to-day expenses.
Simplified expenses: HMRC flat rates for self-employed (2025/26)
HMRC allows some self-employed individuals to use simplified expenses instead of tracking actual costs. This can reduce record keeping, but you must choose either simplified expenses or actual costs — not both for the same category.
Home working (flat rate):
- 25–50 hours/month: £10/month
- 51–100 hours/month: £18/month
- 101+ hours/month: £26/month
Mileage rates:
- Cars and vans: 45p per mile (first 10,000 miles), 25p thereafter
- Motorcycles: 24p per mile
- Bikes: 20p per mile
Simplified expenses are most useful for smaller businesses with limited records or mixed personal use costs.
When to Seek Advice
Expense claims are rarely just about lists, they often involve judgement, especially where there is mixed use, higher-value items, or unusual circumstances.
If you are unsure whether a cost is allowable, or how to calculate the correct business proportion, it is usually better to review the position before submitting your return rather than correcting it later.
Review Your Self-Employed Expenses Before Filing
Knowing which expenses you can claim when self-employed is essential to reduce taxable profit legitimately while avoiding incorrect deductions that may lead to HMRC scrutiny. Travel, home office costs, equipment, and professional fees must meet the “wholly and exclusively” rule, and grey areas can quickly create compliance risk. Seeking structured accounting services London ensures your claims are accurate, documented, and aligned with current legislation. Cigma Accounting, advising sole traders from our Fulham Broadway and supporting clients in Battersea Park Perimeter and Plantation Wharf, provides clear guidance to help you maximise self employed allowable expenses list UK confidently.
Poor record-keeping or misunderstanding mixed-use expenses can result in overclaims or missed opportunities. Working with an experienced tax accountant in London allows you to review expense categories before submitting your self-assessment return. Cigma Accounting offers practical, compliance-focused support with physical offices across London, helping self-employed professionals optimise tax deductible expenses for self employed while remaining fully aligned with HMRC requirements.
Frequently asked questions
What expenses can I claim when self-employed in the UK?
As a self-employed individual in the UK, you can claim allowable expenses that are incurred wholly and exclusively for business purposes. These include office costs, travel, staff wages, marketing, professional fees, insurance, and a proportion of home costs if you work from home. Allowable expenses are deducted from your gross income before tax is calculated, reducing your overall tax liability.
What are the most common self-employed deductible expenses in the UK?
The most commonly claimed self-employed deductible expenses in the UK are: office stationery and software subscriptions, business phone and internet costs, travel and vehicle expenses for business journeys, rent and utility bills for business premises, staff wages and employer National Insurance, accountancy and legal fees, marketing and advertising costs, and business insurance premiums. Each must meet HMRC’s wholly and exclusively test to be deductible.
Can I claim working from home expenses when self-employed?
Yes. Self-employed individuals who work from home can claim a proportion of household costs including rent, utilities, and broadband. You can use HMRC’s simplified flat rates £10, £18, or £26 per month depending on hours worked or calculate actual costs based on the proportion of your home used for business. You cannot claim the full household bill unless the space is used exclusively for business.
What mileage can I claim as self-employed in the UK?
What expenses can I NOT claim when self-employed?
What are capital allowances and how do they differ from allowable expenses?
Maximise Allowable Deductions and Stay HMRC Compliant
Understanding self employed expenses helps reduce taxable income legally under HMRC rules. We help individuals identify self employed deductible expenses, clarify what can I claim for being self employed, and ensure accurate reporting of self employed what can i claim within Self Assessment returns.
Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.
