What Expenses Can I Claim If I Am Self Employed

When you are self employed, you can deduct certain business expenses from your income to reduce the amount of tax you pay. These are known as allowable expenses and cover the costs of running your business day to day. Knowing what you can and cannot claim is essential for staying compliant with HMRC and ensuring you do not miss out on legitimate tax savings. This article explains the main types of expenses you can claim if you are self employed and how to record them correctly.

Understanding Allowable Business Expenses

Allowable expenses are costs that are wholly and exclusively for business purposes. If an expense has both business and personal use, you can only claim the business portion. For example, if you use your mobile phone for both work and personal calls, you can only claim the percentage used for work.

When completing your Self Assessment tax return, allowable expenses are deducted from your total income to calculate your taxable profit. Claiming correctly ensures you only pay tax on what you actually earn after covering your business costs.

Common Allowable Expenses for the Self Employed

1. Office Costs
You can claim expenses for office supplies and equipment such as:

  • Stationery, printer ink, and postage.

  • Computers, printers, and software.

  • Subscriptions for business tools or professional publications.

If you work from home, you can also claim a portion of your household costs, such as heating, electricity, and internet, using one of two methods:

  • Simplified expenses: HMRC’s flat rate based on the number of hours you work from home each month.

  • Actual costs: A percentage of your household bills based on the space and time used for business.

2. Travel Costs
Travel expenses can include:

  • Fuel, parking, and tolls for business journeys.

  • Train, bus, or taxi fares for business trips.

  • Accommodation and meals for overnight stays.

You cannot claim for commuting between your home and your regular place of work. However, if you visit clients, suppliers, or temporary workplaces, those trips are usually allowable.

If you use your personal vehicle for business, you can choose between two methods:

  • Mileage allowance: 45p per mile for the first 10,000 miles and 25p per mile after that.

  • Actual vehicle costs: A proportion of your fuel, insurance, repairs, and servicing based on business use.

3. Marketing and Advertising
You can claim the cost of promoting your business, including:

  • Website design and hosting.

  • Business cards, flyers, or signage.

  • Online advertising such as Google or social media campaigns.

  • Trade shows and networking events.

These expenses must directly relate to your business and not to personal projects.

4. Professional Fees
Professional services used for your business are allowable, including:

  • Accountants and bookkeepers.

  • Solicitors for business-related matters.

  • Business consultants or advisors.

  • Membership fees for professional bodies relevant to your trade.

Personal legal fees, such as divorce or buying a private property, are not allowable.

5. Rent and Premises Costs
If you rent office, workshop, or studio space, you can claim:

  • Rent and service charges.

  • Business rates.

  • Utility bills and cleaning costs.

  • Repairs and maintenance for the business premises.

If you own the premises, you can claim maintenance but not mortgage repayments, as those are considered capital costs.

6. Telephone and Internet
You can claim for mobile, landline, and internet bills if they are used for business purposes. If there is a mix of personal and business use, claim only the percentage used for business. Keeping itemised bills helps you calculate this accurately.

7. Training and Development
You can claim for training that helps you maintain or update skills relevant to your current business. For example:

  • CPD (Continuing Professional Development) courses.

  • Training in software or tools used in your trade.
    Training for a completely new skill or business venture is not allowable.

8. Clothing and Uniforms
Specialist clothing required for your work is an allowable expense. This includes:

  • Protective clothing such as safety boots or overalls.

  • Branded uniforms displaying your company logo.

Everyday clothing, even if worn for business meetings, is not deductible.

9. Insurance
Business insurance premiums are allowable, such as:

  • Professional indemnity insurance.

  • Public liability insurance.

  • Employer’s liability insurance (if you employ staff).

  • Business contents insurance.

Personal insurance policies like life or health insurance cannot be claimed.

10. Bank Charges and Interest
You can claim:

  • Bank account fees and charges for business accounts.

  • Interest on business loans, credit cards, or overdrafts.
    If you use a personal bank account for business, you can only claim a portion of the charges that relate to your work.

Capital Allowances for Equipment and Vehicles

Some purchases are considered long-term investments, such as machinery, computers, or vehicles. Instead of claiming the full cost as an expense, you may claim capital allowances, which let you deduct a portion of the cost each year.

Most small businesses can use the Annual Investment Allowance (AIA), which allows you to claim the full cost of qualifying assets up to £1 million in the year of purchase.

Your accountant can help you decide whether to claim an item as an expense or through capital allowances, depending on its value and usage.

Record Keeping Requirements

To claim expenses, you must keep accurate records of all transactions, including:

  • Receipts and invoices for every purchase.

  • Mileage logs and travel records.

  • Bank statements showing payments.

  • Copies of digital receipts for online expenses.

HMRC requires you to keep these records for at least five years after the tax return submission deadline for that year. Digital accounting software such as Xero, QuickBooks, or FreeAgent can simplify record keeping and help you stay compliant with Making Tax Digital.

Expenses You Cannot Claim

Some expenses are specifically excluded by HMRC. These include:

  • Personal living costs, such as rent, food, or clothing.

  • Entertaining clients, even if it relates to your business.

  • Fines or penalties (for example, parking tickets).

  • Private use portions of mixed expenses.

If in doubt, ask yourself whether the expense was incurred wholly and exclusively for business. If not, it is unlikely to qualify.

How an Accountant Can Help

An accountant can ensure that your expense claims are accurate, legitimate, and tax-efficient. They can:

  • Identify all allowable costs you may overlook.

  • Separate personal and business expenses properly.

  • Calculate the most efficient way to claim vehicle or equipment costs.

  • Keep your records compliant with HMRC.

  • File your Self Assessment tax return correctly and on time.

Professional guidance helps you maximise your deductions while reducing the risk of errors or penalties.

Summary

If you are self employed, you can claim a wide range of expenses to reduce your taxable income, including travel, office costs, professional fees, and insurance. The key is that each expense must be solely for business purposes. Keeping detailed records and using reliable accounting software makes managing expenses easier and ensures compliance with HMRC rules.

Working with an accountant can help you claim everything you are entitled to, avoid mistakes, and focus on running your business with confidence.