Free tool · 2025/26

What expenses can I claim as a sole trader?

Search common business costs to see whether you can claim them as a sole trader, and work out the flat rates for working from home and business mileage.

Can I claim it?

Common costs for sole traders, from GOV.UK's guidance.

AllowableStationery, printing and postageOffice costs used for the business are allowable.
Partly allowablePhone, mobile and internetClaim the business share of the bill. A separate business line or contract is allowable in full.
AllowableComputer software and subscriptionsSoftware and online services used for the business are allowable.
AllowableComputer, laptop or tools you keepEquipment you keep for the business can be claimed as capital allowances, or as an expense if you use cash basis.
AllowableBusiness travel: fuel, parking, train and bus faresTravel for business trips is allowable, but not your normal commute to a regular place of work.
Not allowableCommuting to your usual workplaceOrdinary travel between home and a permanent place of work is not a business expense.
Partly allowableCar or van running costsClaim the business share of fuel, insurance, repairs and servicing, or use the mileage flat rate instead.
AllowableHotel rooms and meals on business tripsOvernight business travel costs are allowable. Everyday lunches are not.
Not allowableFines and parking ticketsFines for breaking the law, including parking and speeding fines, are not allowable.
AllowableUniforms and protective clothingUniforms, protective clothing and costumes for the job are allowable.
Not allowableEveryday clothingOrdinary clothes are not allowable, even if you only wear them for work.
AllowableStaff wages, bonuses and pensionsPay and employer costs for staff are allowable. Your own drawings are not.
AllowableSubcontractors and freelancersPaying other people to do work for your business is allowable.
Not allowableYour own pay or drawingsMoney you take out of the business for yourself is not an expense.
AllowableStock and raw materialsGoods you buy to sell, and materials used to make them, are allowable.
AllowableBank charges, card fees and overdraft interestCharges and interest on business accounts and loans are allowable.
AllowableAccountancy and legal feesFees for running the business are allowable. Fines and legal costs of buying property or equipment are not.
AllowableBusiness insurancePublic liability, professional indemnity and similar business insurance is allowable.
AllowableRent, rates and power for business premisesCosts of premises used only for the business are allowable.
Partly allowableWorking from home: household billsClaim a fair business proportion of heating, power and broadband, or use the flat rate for hours worked at home.
AllowableAdvertising and marketingAdverts, websites, business cards and similar marketing costs are allowable.
Not allowableEntertaining clients or suppliersClient entertainment and hospitality are not allowable.
Partly allowableGifts to clientsGifts showing your business name and costing under £50 per person a year are allowable, but not food, drink or tobacco.
AllowableTraining to keep up your current skillsCourses that update skills you already use in the business are allowable.
Not allowableTraining for new skills or a new businessTraining that gives you new skills or qualifications for a new area is not allowable.
AllowableTrade or professional body fees and journalsSubscriptions to bodies and publications relevant to your trade are allowable.
AllowableRepairs and maintenanceRepairing business property and equipment is allowable. Improvements and alterations are capital costs.
Not allowableBuying or improving a buildingBuying property or building improvements are not allowable expenses.
Not allowableGym membership and personal costsPersonal costs are not allowable, even if they help you work.
Not allowableIncome Tax and National InsuranceYour own tax bills are not an expense of the business.

Working from home and mileage

Simplified expenses: flat rates you can use instead of working out actual costs.

Hours worked at home each monthBusiness work only, a typical monthhoursMonths you worked at homeUp to 12 in the tax yearmonthsBusiness miles by car or vanFor the year, not commutingmilesBusiness miles by motorcycleFor the yearmilesOther allowable costsEverything else you can claim, for the trading allowance comparison£

Use of home: £0.00
Mileage: £0.00
Other allowable costs: £0.00
Total expenses: £0.00

If you use the mileage rate for a vehicle, you can't also claim its fuel, insurance or repairs. The use of home flat rate doesn't include phone and broadband, which you can claim separately.

The rules in brief

You can claim costs you have wholly and exclusively for your business. If something is partly personal, such as your phone or car, you can claim the business share. Allowable expenses reduce your profit, and so your Income Tax and National Insurance.

You can't claim commuting to your usual workplace, everyday clothing, entertaining clients, fines, or training for new skills.

Simplified expenses for 2025/26: if you work at least 25 hours a month from home you can claim a flat £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. For business mileage in a car or van, claim 45p a mile for the first 10,000 miles and 25p after that. Motorcycles are 24p a mile.

Instead of claiming expenses, you can use the £1,000 trading allowance. It's better if your costs are under £1,000, but you can't claim both.

General information, not tax advice. See Expenses if you're self-employed, Simplified expenses and the trading allowance on GOV.UK.