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Guide for sole traders

Business expenses: what can you claim?

An introduction to common allowable business expenses for sole traders and individual partners. The amount you can claim depends on the purpose of the cost and your circumstances.

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Common expense categories

Examples of allowable costs

The following expenses may be allowable where they meet HMRC requirements and relate to the business.

01

Office and administration

Business stationery, software subscriptions, business phone or internet costs, subject to private-use adjustments.

02

Travel and vehicles

Qualifying business travel, mileage or the appropriate vehicle expenses, depending on the accounting method.

03

Premises and working from home

Qualifying business premises costs and an appropriate claim for working from home.

04

Insurance and professional fees

Eligible business insurance and professional costs, subject to exclusions.

05

Marketing and subscriptions

Business-related advertising, website costs and qualifying trade subscriptions.

06

Equipment and capital items

Treatment depends on the accounting method and capital allowance rules; not every purchase is an ordinary expense.

Sole traders and limited companies

Important distinctions

This guide applies to sole traders and individual partners. A limited company follows different rules, and business owners should not assume the same treatment for expenses or drawings.

Working from home: HMRC simplified expenses may be available to eligible self-employed people, but not to limited companies. A different method may be better depending on the circumstances.
Email enquiries

Questions about allowable expenses?

Email the practice with a general enquiry. Please avoid sending sensitive tax details until a secure method has been agreed.

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