Blog.

Here’s a comprehensive list of what sole traders can usually claim as business expenses (for UK tax purposes under HMRC rules).

These are allowable expenses that can reduce your taxable profit — as long as they’re wholly and exclusively for business use.

💼 General Business Expenses

• Accountancy and bookkeeping fees
• Bank charges and business account fees
• Business insurance (public liability, professional indemnity, etc.)
• Office supplies – stationery, printer ink, postage, etc.
• Software subscriptions – QuickBooks, Xero, Microsoft 365, Adobe, etc.
• Professional memberships and subscriptions (if relevant to your trade)
• Advertising and marketing costs – website, flyers, social media ads, etc.
• Training and courses (if related to your current business)

🚗 Travel and Vehicle Expenses

If you use a vehicle for business:

• Fuel
• Servicing and MOT
• Repairs and insurance
• Vehicle tax
• Breakdown cover
• Parking fees (not fines!)
• Mileage (instead of actual costs) — 45p/mile for first 10,000 miles, 25p/mile thereafter

For public transport:

• Train, bus, or taxi fares for business trips
• Hotel stays and meals while travelling overnight for work

🏠 Working from Home Expenses

If you work from home, you can claim either:

• Simplified flat rate (based on hours worked from home per month), or
• Actual business proportion of:
• Rent or mortgage interest (not repayments)
• Council tax
• Utilities (electricity, gas, water)
• Internet and phone
• Repairs and maintenance (if part of your home used for business)

🧾 Phone and Internet

• Business mobile contract or calls
• Portion of home phone/internet used for business

Keep a record of how much you use personally vs. business use.



🧰 Equipment and Tools

• Computers, laptops, tablets
• Phones
• Cameras or printers
• Tools and machinery
• Furniture or desks (if used for business)
• Repairs and replacements of tools

(Some of these may qualify as capital allowances if they’re large purchases.)

👕 Clothing and Uniform

You can claim:

• Protective clothing (e.g., steel-toe boots, gloves)
• Uniforms branded with your business name

You can’t claim ordinary clothes, even if you only wear them for work (like a suit or casual outfit).

🍽️ Food and Entertainment

• Meals while travelling for business (not lunch at your usual place of work)
• Client meals only if directly related to business (note: entertainment is not normally deductible for tax relief, but still track it for accounting).

🏢 Premises and Rent

If you rent a workspace:

• Office rent or coworking space
• Business rates
• Cleaning
• Utilities and maintenance

💻 Other Allowable Costs

• Business loans or overdraft interest
• Website hosting and domain names
• Postage and couriers
• Subcontractors or freelancers you pay
• Wages (if you employ someone)
• Pension contributions (for yourself via a personal pension, for employees via PAYE)

⚠️ Not Allowable (Common Mistakes)

• Personal expenses (e.g., groceries, clothes, personal phone bills)
• Client entertainment (meals, drinks, gifts over £50)
• Fines or penalties (parking, speeding, etc.)
• Depreciation (use capital allowances instead)