Everyday business costs can quickly add up when you are self-employed, but not every payment can be deducted from your income. Understanding what expenses self-employed people can claim in the UK in 2026 under HMRC rules helps you calculate your taxable profit correctly and avoid missing legitimate deductions.

In most cases, you can claim costs incurred wholly and exclusively for your trade. Mixed-use expenses, such as telephone bills, home-working costs and vehicle use, must be divided so that you claim only the business portion. This guide explains the main allowable expenses, the costs HMRC may examine more closely and the records you should retain.

Our Self Assessment support helps Kent sole traders check income, expenses and evidence before filing. Call 01322 250 001 to discuss your position.

What expenses can be claimed under the HMRC rules?

HMRC generally allows an expense when it is incurred wholly and exclusively for your business. In practical terms, there should be a clear business reason for the cost. A private benefit does not invalidate it when that benefit is merely incidental, but a genuine dual-purpose cost may be disallowed. Where a separate business proportion can be identified, such as business calls on a mixed-use mobile contract, that share may be claimed.

Ask four questions:

• What was the business purpose?

• Is there any private purpose?

• Can the business share be calculated?

• Is there an invoice, receipt, log or working paper?

What business expenses can sole traders claim?

The expenses you can claim will depend on how your business operates, but the main categories include:

• Office costs: You can claim the business share of software, stationery, postage, telephone and broadband costs.

• Travel: Qualifying mileage, public transport, parking, hotels and overnight subsistence, but not ordinary commuting.

• Premises: Rent, rates, utilities, insurance, repairs and security for a workshop, studio or office.

• Staff: Wages, employer costs and subcontractor payments.

• Stock and materials: Goods for resale, raw materials and direct production costs.

• Professional costs: Business-related accountancy, legal fees, insurance, bank charges and loan interest. Preparing and submitting the personal Self Assessment return itself is not allowable.

• Marketing: Advertising, websites, directories, mailshots and samples.

• Training: Courses connected with the existing trade, not training for an unrelated new business.

How equipment is treated depends on the accounting method used. Some purchases can be recorded as expenses, while others may qualify for capital allowances.

Under cash basis, most equipment is normally claimed as an expense, with special rules for cars. Under traditional accounting, qualifying equipment may receive capital allowances, including Annual Investment Allowance of up to £1 million.

Regular bookkeeping support keeps categories and evidence current instead of rebuilding them at year end.

 

 

Which expenses for self-employed people need a more careful calculation?

Mixed personal and business use creates the greatest need for a clear calculation.

Working from home

The £6-a-week figure commonly associated with working from home relates to the previous employee tax-relief rules, not the simplified-expenses scheme for sole traders. From 6 April 2026, employees can no longer make new claims for non-reimbursed homeworking costs, although eligible claims may still be made for earlier tax years.

Self-employed people can instead use HMRC’s monthly flat rates: £10 for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. Telephone and internet costs are calculated separately. Alternatively, you can claim a reasonable business share of actual household costs, based on factors such as the rooms used and the time spent working from home.

Business mileage and travel costs

For journeys made before 6 April 2026, the simplified rate for cars and vans is 45p for the first 10,000 business miles and 25p thereafter. From 6 April 2026, the rates are 55p and 25p.

Keep a clear mileage record with enough journey detail to demonstrate that the miles were business-related. If you claim actual vehicle costs instead, exclude the personal-use proportion. You cannot claim ordinary commuting, personal journeys, fines or penalty charges.

Entertaining and clothing

Client, supplier and customer entertaining is generally not allowable, even with a commercial motive. Everyday clothing is also excluded, even when bought only for work. Uniforms, protective clothing and performers’ costumes can qualify.

What can I claim if I am self-employed in the UK?

A valid expense can still be difficult to support if the records are incomplete. Keep enough information to show what the cost was, when you paid it and why it related to the business.

Keep sales invoices, purchase receipts, bank statements, mileage logs and calculations for mixed-use costs. Add the business purpose when it is not obvious.

HMRC requires self-employed records to be kept for at least five years after the 31 January submission deadline for the relevant tax year.

Common errors include claiming the full cost of mixed-use telephone or vehicle expenses, including ordinary commuting, claiming everyday clothing or client entertainment, and deducting actual expenses while also using the £1,000 trading allowance. Expense figures should be supported by accurate and complete records. Where records cannot be recreated, HMRC permits estimated figures, but these must be identified on the tax return.

When can an accountant support with allowable expenses for a sole trader?

For sole traders across Kent, the difficult part is often not identifying a cost but deciding how much of it is genuinely business-related. This is particularly relevant when you work from home, use a personal vehicle or pay for services with mixed use.

Our tax planning service can help review whether simplified or actual-cost methods fit your records, identify legitimate omissions and explain where evidence needs strengthening. With more than 50 years of combined experience, our ICAEW-qualified team can review expense categories, mixed-use calculations and the evidence behind each claim.

Claim the right amount with confidence

The best approach is consistent and practical: identify the business reason, separate any personal use and retain evidence that supports the calculation. This helps you claim legitimate costs without making the process more complicated than it needs to be.

Call 01322 250 001 or email info@adams-accountancy.co.uk for practical help reviewing your expenses and preparing your Self Assessment return.

Frequently asked questions

Can a sole trader claim meals?

Normal daily meals are not usually allowable. Meals may qualify during overnight business travel or in limited itinerant-travel circumstances.

Can I claim my mobile phone bill?

Yes, but only the identifiable business share when the contract also covers personal use.

Can I claim travel from home to a client?

It depends on the journey. Travel undertaken for a qualifying business visit may be allowable, while travel from home to a regular business base is normally commuting.

Can I claim an accountant’s fees?

Business-related accountancy work can qualify. HMRC excludes preparing and submitting the personal Self Assessment return, so an invoice may need splitting.

Can I use the £1,000 trading allowance and claim expenses?

No. You generally choose either the trading allowance or actual allowable expenses for that trade.