What Expenses Can I Claim as a Sole Trader in the UK?
- 4 days ago
- 4 min read
Running your own business as a sole trader in the UK means you are responsible for reporting your income and expenses to HMRC through your Self Assessment tax return.
The good news? Many of your everyday business costs can be claimed as allowable expenses, which reduce your taxable profit and ultimately lower the tax you pay.
For example, if your business earns £40,000 and you claim £10,000 in allowable expenses, you only pay tax on £30,000.
At DUO Accountants, we often see new business owners missing out on legitimate claims simply because they don’t know what they can include. This guide explains the common expenses you can claim — plus some surprising ones many sole traders forget.
What Are Allowable Expenses?
Allowable expenses are costs that are “wholly and exclusively” for your business. In simple terms, if you spend money only to run your business, you can usually claim it as an expense. This include office costs, travel expenses, staff wages, marketing costs, and business insurance.
However, personal expenses cannot be claimed unless you separate the business portion from personal use.
Common Expenses Sole Traders Can Claim
Here are the main categories of allowable expenses recognised by HMRC.
1. Office Costs
These are everyday costs of running your business. These are typical office expenses allowed by HMRC for self-employed individuals. Examples include: stationery, printing and ink cartridges, postage, phone and mobile bills, internet costs, business software subscriptions.
💡 Tip from DUO Accountants: Many freelancers forget they can claim software subscriptions such as accounting tools, design software, or CRM systems used for their business.
2. Travel Expenses
You can claim travel costs when the journey is for business purposes. Examples include: fuel for business journeys, train or bus fares, parking fees, taxis, tolls and congestion charges, hotel stays for business trips
However, you cannot claim your daily commute between home and a regular workplace. You may also claim business mileage if using your own vehicle.
3. Working From Home Expenses
Many sole traders work from home, and HMRC allows you to claim part of your household costs. Examples include: electricity and heating, water bills, internet, rent (portion used for business), mortgage interest (business proportion only).
You must claim only the portion related to business use.
💡 Many people miss this — even working from home a few days per week may allow you to claim part of your bills.
4. Business Equipment and Technology
If you buy equipment for your business, it can often be claimed. Examples include: laptop or computer, printer or scanner, mobile phone used for work, office furniture, cameras or specialist tools.
Smaller items used for less than two years may be claimed as expenses. Larger assets may qualify for capital allowances.
5. Stock and Raw Materials
If your business sells products, you can claim: goods bought for resale, raw materials used to make products, packaging materials. These are considered essential business costs and are fully deductible.
6. Marketing and Advertising
Promoting your business is also tax deductible. Examples include: website development and hosting, domain names, social media ads, Google ads, printed marketing materials, business directory listings.
These costs help generate customers and are considered legitimate business expenses.
7. Professional and Financial Costs
Many business services are also allowable. You can claim expenses for accountants, solicitors, business consultants, professional indemnity insurance, and bank charges and loan interest. These professional services count as allowable expenses when used for business.
8. Staff and Subcontractor Costs
If you hire help in your business, you can claim: employee salaries, subcontractor payments, bonuses, employer National Insurance, pension contributions, and training related to your business. These are recognised staff expenses by HMRC.
Lesser-Known Expenses Many Sole Traders Miss
Here are some surprisingly claimable expenses that many self-employed people forget.
Business training courses
Courses that improve skills relevant to your business can be claimed.
Professional memberships
Subscriptions to approved trade bodies or industry organisations may be allowable.
Protective clothing
Uniforms or protective clothing required for your work can be claimed. Examples include safety boots, branded workwear, and protective equipment
However, regular clothing (like suits) cannot be claimed.
Overnight business meals
If you travel overnight for work, meals during the trip may be claimable.
Business phone usage
If your phone is used partly for business, you can claim the business percentage of the bill.
Expenses You Cannot Claim
Not everything qualifies as a business expense. Examples HMRC does not allow include:
Personal expenses
Fines or penalties
Everyday clothing
Personal medical insurance
Pension contributions (claimed differently)
Also, if you claim the £1,000 trading allowance, you cannot claim additional expenses at the same time.
Frequently Asked Questions
Can I claim food as a business expense?
Usually no, unless the meal is part of a business trip or overnight stay.
Can I claim my home internet?
Yes, but only the portion used for business.
Do I need receipts for expenses?
Yes. HMRC expects you to keep records of your expenses such as receipts, invoices, or bank statements.
What if an expense is partly personal and partly business?
You can only claim the business portion of the cost.
Final Thoughts from DUO Accountants
Claiming expenses correctly can significantly reduce your tax bill — but many sole traders either miss legitimate expenses or accidentally claim things they shouldn’t. The golden rule from HMRC is simple: The expense must be wholly and exclusively for your business. If you’re unsure what you can claim, working with an accountant can help ensure you maximise your deductions while staying compliant with HMRC.
At DUO Accountants, we help sole traders keep their finances simple, compliant, and tax-efficient.
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