What Expenses Can I Claim? (Self-Employed UK Guide)
A plain-English run-through of allowable business expenses for sole traders and freelancers, based on HMRC's rules.
Figures last verified 28 June 2026, for the 2026/27 tax year.
How expenses reduce your tax bill
You only pay Income Tax on your profit — turnover minus allowable business expenses. So if you invoice £40,000 in a tax year and claim £10,000 in allowable expenses, you're taxed on £30,000, not £40,000. To count, a cost must be "wholly and exclusively" for your business — personal spending doesn't qualify, and mixed-use costs (like a home office or a car used for both work and personal trips) need to be split fairly between business and personal use.
If your turnover is small, you may be better off using the £1,000 tax-free Trading Allowance instead of claiming actual expenses — but you can't use both at once. If your real expenses are higher than £1,000, claiming actual expenses usually works out better.
1. Allowable expense categories
| Category | Examples |
|---|---|
| Office costs | Stationery, phone bills, software subscriptions |
| Travel costs | Fuel, parking, train or bus fares (not commuting to a single permanent workplace) |
| Clothing | Uniforms, branded workwear, protective clothing |
| Staff costs | Salaries, subcontractor payments, employer NI |
| Things you buy to sell | Stock, raw materials |
| Financial costs | Business insurance, bank charges, accountant's fees |
| Costs of your business premises | Heating, lighting, business rates, rent |
| Advertising or marketing | Website costs, paid ads, business cards |
| Training courses | Courses that maintain or update your existing business skills |
2. Working from home — simplified expenses flat rate
If you work 25 hours or more a month from home, you can use HMRC's flat rate instead of working out the business proportion of your actual utility bills. This flat rate does not include phone or internet — claim the business proportion of those separately, based on actual cost.
| Hours worked from home per month | Flat rate per month |
|---|---|
| 25 to 50 hours | £10 |
| 51 to 100 hours | £18 |
| 101 hours or more | £26 |
3. Business mileage — simplified expenses flat rate
Instead of tracking actual vehicle costs (fuel, insurance, servicing, depreciation), you can claim a flat rate per business mile. You only need to keep a log of business miles driven.
| Vehicle type | Rate per mile |
|---|---|
| Cars/vans — first 10,000 business miles | 55p |
| Cars/vans — after 10,000 miles | 25p |
| Motorcycles | 24p |
| Bicycles | 20p |
The car/van rate rose from 45p to 55p from 6 April 2026 — the first increase since 2011. Source: gov.uk — Increasing mileage rates
What you can't claim
You cannot claim expenses against your profit if you're using the £1,000 Trading Allowance instead. General clothing (not uniforms or protective wear), personal travel, entertaining clients, and fines/penalties are also not allowable. If you're unsure whether a specific cost qualifies, gov.uk recommends contacting HMRC directly rather than guessing.
This is guidance, not professional advice. If a claim is significant or your situation is unusual, check with a qualified accountant before relying on it.