Self employed expenses: what you can claim for tax

Published Friday 17 April 2026

Table of contents

• What are self-employed business expenses?
• Benefits of claiming self-employed business expenses
• What are the different types of allowable self-employed business expenses?
• FAQs on self-employed business expenses

Key takeaways

• Claim all allowable expenses that directly relate to running your business — such as home office costs, travel, equipment, and training — to reduce your taxable profit and lower your tax bill.
• Use simplified expenses (a flat monthly rate) if you work from home for at least 25 hours a month, or calculate your actual costs by room and days worked to find the most accurate deduction.
• Keep receipts and invoices for at least five years after the 31 January submission deadline, as HMRC can request records during an enquiry and may charge penalties for incorrect or unsupported claims.
• Avoid claiming training costs for entirely new skills or a new business, as HMRC only allows deductions for courses that improve skills you already use in your current work.

What are self-employed business expenses?

Self-employed business expenses are running costs you can legally deduct from your taxable profit. HMRC calls these 'allowable expenses' because they directly reduce the amount of tax you owe.

The more allowable expenses you claim, the lower your tax bill, though you can't claim expenses if you use your £1,000 tax-free trading allowance.

Common allowable expenses include office supplies, equipment, business travel, and job-specific training.

Real examples: An electrician can claim the cost of a work van and fuel for client visits. An Etsy seller can claim packaging costs for shipping products to customers.

Getting your expense claims right matters for three reasons:

• Save on tax: If your turnover is £65,000 and your expenses are £10,000, you pay tax on £55,000
• Stay compliant: Claiming correctly helps you avoid HMRC enquiries and penalties
• Gain peace of mind: Accurate claims protect your business reputation

Benefits of claiming self-employed business expenses

Claiming self-employed expenses reduces your tax bill because you only pay tax on profit, not total revenue. Profit equals turnover minus allowable expenses.

Claiming expenses delivers three main benefits:

• Lower your taxes: Pay only on actual profit after deducting legitimate business costs
• Invest in your business: Fund training and professional development as allowable expenses
• Improve cash flow: Keep more money in your business for growth

What are the different types of allowable self-employed business expenses?

Allowable expenses fall into seven main categories:

• home office costs: heating, electricity, council tax, rent portions
• travel and transport costs: business mileage, fuel, parking, public transport
• office supplies and equipment: stationery, software, business tools
• professional services: accountant fees, legal costs, insurance
• staff expenses: salaries, training, National Insurance contributions
• marketing and advertising: website costs, promotional materials, directory listings
• training and development: business-related courses, professional memberships

HMRC provides a helpful self-employed allowable expenses list, which the following sections explain in detail.

Home office deductions

Home office expenses let you claim the business portion of domestic costs when you work from home regularly. You can never claim the full amount for mixed-use costs.

Claimable home costs include:

• utilities: heating and electricity (business portion only)
• property costs: council tax, mortgage interest, or rent (business portion)
• communications: internet and phone bills (business usage only)

If you work from home for at least 25 hours a month, you can use simplified expenses to claim a flat rate per month based on your hours. Working over 25 hours a week lets you claim £312 per year.

Otherwise, calculate your actual costs by room or by days worked.

Here's how to calculate actual home office costs:

1. Divide your annual electricity bill by the number of rooms: £750 ÷ six rooms = £125 for your home office
2. Calculate your business portion: £125 ÷ seven days × four work days = £71.43

Result: You can claim £71.43 as an allowable expense for electricity.

Travel costs are another significant category of claimable expenses.

Travel and transport allowable expenses

Business travel costs qualify as allowable expenses when the journey is for work purposes.

HMRC allows you to claim:

• vehicle costs: insurance, repairs, servicing, fuel, parking, hire charges, licence fees, breakdown cover
• public transport: train, bus, air, and taxi fares
• overnight trips: hotel rooms and meals

These travel costs are not allowable:

• non-business driving and travel
• fines and penalties
• commuting between home and your regular workplace

Buying a vehicle for business use follows different rules depending on your accounting method:

• use traditional accounting: claim the vehicle purchase as a capital expense
• use cash basis accounting: claim as a capital expense only if you're not using simplified expenses

Understanding how to claim office costs is equally important.

Office supplies and equipment claims

Equipment and supplies are claimed through two different methods depending on how long you use them.

Allowable expenses cover short-term operating costs:

• duration: items used for less than two years
• examples: office stationery, phone bills, software subscriptions
• benefit: immediate full tax deduction in the year of purchase

Capital allowances cover long-term business assets like equipment, machinery, and vehicles. These are explained in detail below.

Larger regular costs also qualify as allowable expenses. These include business premises rent, utility bills, property insurance, and security.

For items you keep long-term, claim capital allowances instead, such as the Annual Investment Allowance which lets you claim up to £1 million on certain plant and machinery. Common examples include:

• equipment
• machinery
• business vehicles

You can find a comprehensive explanation of how capital allowances work on the HMRC website.

Professional services are another category of claimable expenses.

Professional services expenses

Professional services you can claim include:

• advisory fees: accountant, solicitor, surveyor, or architect costs (though you can't claim for the cost of preparing and submitting your Self Assessment tax return)
• business insurance: professional indemnity, public liability, and other policies
• financial charges: bank fees, overdraft charges, credit card fees
• interest payments: bank loans, business loans, hire purchase, leasing, alternative finance (such as Islamic Finance)

For costs associated with customers not paying you, read HMRC's guidance on claiming for bad debts.

Staff costs form another important category.

Staff-related allowable expenses

If you employ staff or use subcontractors, you can claim various related costs. Staff costs you can claim include:

• salaries, wages, and bonuses
• employer's National Insurance contributions
• pension contributions
• staff training costs
• subcontractor and agency fees

Costs for carers or domestic help are not allowable.

Marketing is essential for growing your business, and many costs are claimable.

Marketing, advertising and branding expenses

Promoting your business generates allowable expenses. Marketing costs you can claim include:

• newspaper adverts and directory listings
• free samples
• website costs

Entertaining clients, suppliers, customers, or event hospitality are not allowable expenses.

Investing in your skills can also reduce your tax bill.

Training and professional development deductions

Training courses that improve skills you already use in your business qualify as allowable expenses. Recent HMRC clarifications confirm this includes training to keep pace with technology or develop ancillary skills like bookkeeping.

Examples of claimable training:

• A freelance graphic designer claiming a course on new design techniques
• A dog trainer claiming a workshop on training older pets
• CPD courses required to maintain professional association membership

Key restriction: You can only claim training that relates to your current business.

Training for a new business or revenue stream is not allowable, as costs to acquire entirely new skills are treated as capital and not deductible.

Several other expenses also qualify for deduction.

Miscellaneous claimable expenses

Beyond the main categories, you can claim several other business-related costs. Other claimable expenses include:

• subscriptions to trade or professional journals
• trade body or professional organisation memberships
• charity sponsorships (if they meet HMRC criteria, though not charitable donations)
• legal costs of buying machinery (if you use accrual accounting, claimed as capital allowances)

FAQs on self-employed business expenses

Here are answers to common questions about claiming self-employed expenses.

What's the difference between allowable expenses and capital allowances?

Allowable expenses are immediate deductions for day-to-day running costs, while capital allowances spread the cost of long-term assets like equipment and vehicles over several years.

Can I claim expenses if I'm using the trading allowance?

No. If you use the £1,000 tax-free trading allowance, you can't also claim business expenses. You must choose one or the other.

How long should I keep records of my expenses?

Keep all receipts and invoices for at least five years after the 31 January submission deadline of the relevant tax year. HMRC may ask to see them during an enquiry.

What happens if I claim expenses incorrectly?

HMRC may charge penalties for incorrect claims, ranging from careless errors to deliberate understatements. Keep accurate records and claim only genuine business expenses to stay compliant.