Allowable Expenses for Self-Employed: The Complete List

Which Business Expenses Can You Claim?

Allowable expenses are costs you can deduct from your self-employment income before calculating your tax. They reduce your taxable profit, which means you pay less Income Tax and National Insurance.^[1] You deduct them when you file your Income Tax return with HMRC.

The golden rule: an expense is allowable if it’s incurred wholly and exclusively for the purposes of your business.

Trading allowance: If your total self-employment income is under £1,000, you don’t need to report it or claim expenses — it’s automatically tax-free under the trading allowance.^[4]

Office Costs

Stationery, printing, and postage
Phone bills (business proportion)
Internet (business proportion)
Computer software and subscriptions (e.g. accounting software, cloud storage)

Travel & Vehicle Costs

You can claim travel costs for business journeys — but not for your regular commute between home and your normal place of work.^[1]

Vehicle fuel and running costs (business proportion), or the flat-rate mileage allowance
Public transport fares (train, bus, taxi for business trips)
Parking fees for business travel
Hotel and accommodation for overnight business trips
Meals on overnight business trips (reasonable amounts)

Simplified mileage rates: Instead of tracking actual vehicle costs, you can claim a flat rate per business mile: 45p per mile for the first 10,000 miles, then 25p per mile after that. For motorcycles: 24p per mile. Bicycles: 20p per mile.^[3]

Business Premises

Rent and business rates
Utility bills (gas, electric, water — business proportion)
Property insurance
Security and cleaning
Repairs and maintenance (not improvements)

Working from Home

If you work from home, you can claim a proportion of your household costs. You have two options:^[5]

Method	How It Works
Simplified expenses (flat rate)	25–50 hours/month: £10/month 51–100 hours/month: £18/month 101+ hours/month: £26/month
Actual costs (proportional)	Calculate the business proportion of your actual household costs (mortgage interest/rent, utilities, council tax, broadband) based on rooms used and hours worked

Staff Costs

Employee salaries and wages
Employer’s National Insurance contributions
Pension contributions for staff
Subcontractor costs
Agency fees for temporary staff

Financial Costs

Bank charges and overdraft interest (business accounts)
Credit card charges (business transactions)
Hire purchase interest
Lease payments on business assets

Clothing

You can only claim for clothing that is:^[1]

A uniform or protective clothing (e.g. hard hats, safety boots, branded uniforms)
Costumes for actors or entertainers

You cannot claim for everyday clothing, even if you only wear it for work.

Professional Fees & Subscriptions

Accountancy and tax advice fees
Legal and professional fees (relating to the business)
Trade body or professional association subscriptions
Publications and journals relevant to your business

Marketing & Advertising

Website hosting and domain costs
Online and offline advertising
Business cards and printed materials
Trade show and exhibition costs

Business Insurance

Professional indemnity insurance
Public liability insurance
Employer’s liability insurance
Contents and equipment insurance

Capital Allowances

Large purchases (equipment, machinery, vehicles) aren’t deducted as expenses in one go. Instead, you claim capital allowances:^[2]

Annual Investment Allowance (AIA): 100% deduction on qualifying assets up to £1,000,000 per year
Writing Down Allowance: 18% or 6% per year on assets not covered by AIA
Small pools: If the value of your pool is £1,000 or less, you can write it off entirely

What You Cannot Claim

These are not allowable expenses:^[1]

Your own drawings or salary (if you’re a sole trader)
Personal expenses or items with dual personal/business use (unless you claim only the business proportion)
Client entertaining or hospitality
Fines and penalties (e.g. parking tickets, HMRC penalties)
Everyday clothing
Capital expenditure (claim capital allowances instead)

Frequently Asked Questions

What expenses can I claim as self-employed in the UK?

You can claim any cost incurred wholly and exclusively for your business, including office supplies, travel, vehicle costs, working-from-home expenses, staff costs, professional fees, insurance, and marketing. You cannot claim personal expenses, client entertaining, or everyday clothing.

Can I claim for working from home if I am self-employed?

Yes. You can either use HMRC’s simplified flat rates (£10–£26 per month depending on hours worked) or calculate the actual business proportion of your household costs such as rent, utilities, council tax, and broadband.

What is the self-employed mileage rate for 2025/26?

The approved mileage rate is 45p per mile for the first 10,000 business miles, then 25p per mile after that. Motorcycles are 24p per mile and bicycles are 20p per mile.

What is the trading allowance for self-employed income?

If your total self-employment income is £1,000 or less per year, it is automatically tax-free under the trading allowance and you do not need to report it or claim expenses.

Can I claim clothing as a business expense?

Only if it is a uniform, protective clothing (such as safety boots or hard hats), or a costume for performers. Everyday clothing cannot be claimed, even if you only wear it for work.

Sources

Expenses if you're self-employed — GOV.UK
Claim capital allowances — GOV.UK
Simplified expenses if you're self-employed — GOV.UK
Tax-free allowances on property and trading income — GOV.UK
Running a business from home — GOV.UK