What Expenses Can You Claim If You’re Self-Employed?
If you're self-employed in the UK, you can deduct certain allowable expenses from your income to reduce your tax bill. But what exactly counts as a business expense?
This guide covers common self-employed expenses you can claim, plus a few things to avoid.
What Are Allowable Business Expenses?
Allowable expenses are costs that are “wholly and exclusively” for the purpose of running your business. You subtract them from your income when working out your profit and ultimately how much tax you owe.
HMRC allows a wide range of expenses, but they must be directly related to your business activities.
Common Self-Employed Expenses You Can Claim
- Office costs: Stationery, postage, printer ink, subscriptions, and computer software (e.g. Microsoft 365, accounting tools)
- Business premises: Rent, utilities, business rates, property insurance, and security if you rent a space
- Working from home: A proportion of your household bills, or use HMRC’s simplified flat rate
- Phone and internet: Business portion of mobile or broadband use
- Travel: Fuel, parking, train/bus fares, hotels, and meals while travelling for business (not commuting)
- Vehicle costs: Insurance, servicing, repairs, road tax — or use HMRC’s mileage rate (currently 45p per mile)
- Stock and materials: Goods for resale, raw materials, and production costs
- Marketing: Website costs, adverts, flyers, sponsorships, branding
- Professional fees: Accountant fees, legal advice, business insurance
- Training: Courses or qualifications that help you improve skills used in your current business (see our guide on registering as self-employed if you're just starting out)
- Bank charges: Business bank account fees, interest on business loans or overdrafts
What You Can’t Claim
Some costs may feel “business-related” but aren’t allowable for tax purposes. These include:
- Your own salary (but you can take drawings if you’re a sole trader)
- Everyday clothing — unless it’s protective or branded for work
- Entertaining clients (e.g. meals, drinks, gifts)
- Fines or penalties (such as parking tickets or HMRC late fees)
- Training for a new business or trade you’re not yet working in
Simplified Expenses: An Easier Option
If you're a sole trader or part of a partnership, you can choose to use HMRC’s simplified expenses method for things like:
- Working from home
- Vehicle use
- Living at your business premises
It lets you claim flat rates instead of calculating actual costs, which can save time and reduce record-keeping.
Keeping Records
HMRC expects you to keep accurate records of all your business income and expenses. Keep receipts, invoices, and mileage logs for at least 5 years after the 31 January submission deadline for that tax year.
Using accounting software like QuickBooks, FreeAgent, or Pandle (which has a free plan) can help make tracking expenses easier.
Frequently Asked Questions
Can I claim food as a self-employed expense?
You can only claim food and drink if you're travelling for business purposes and it’s outside your normal working routine. Everyday meals at home or your usual place of work are not allowable.
Do I need to keep receipts for all expenses?
Yes. HMRC recommends keeping receipts, invoices, bank statements, and mileage logs to support your claims in case of an audit.
How do I calculate business use of home expenses?
You can either calculate a fair proportion of actual household bills (based on rooms and hours worked), or use HMRC’s simplified flat rate. The best option depends on your home setup and record-keeping habits.
Final Thoughts
Knowing what you can and can’t claim is key to paying the right amount of tax and not a penny more. If you’re unsure about a particular expense, it’s worth speaking to an accountant or checking HMRC’s official guidance.
The more confidently you track your expenses, the more profit you can legally keep. It’s one of the simplest ways to run a smarter business.