What Expenses Can a Sole Trader Claim in the UK? (2026/27)

Are you paying more tax than you need to?

One of the easiest ways to avoid overpaying tax is to make sure you're recording all the business expenses you're entitled to claim.

If you're self-employed, allowable business expenses generally reduce the profit on which your Income Tax is calculated.

Here are some common expenses worth checking.

1. Everyday business expenses

Depending on your business, you may be able to claim for:

Business stationery, printing and postage
Business phone and internet costs
Accounting and bookkeeping software
Business insurance
Professional subscriptions
Website and advertising costs
Bank charges and eligible finance costs

Top tip: Check payments made from your personal bank account as well as your business account. It's easy to overlook legitimate business purchases.

2. Working from home

Do you carry out bookkeeping, paperwork or business administration at home?

You may be able to claim a reasonable business proportion of certain household costs.

Alternatively, eligible sole traders can use HMRC's simplified flat rates:

Simplified working-from-home expenses per month
Business hours at home per month	Flat-rate expense
25–50 hours	£10
51–100 hours	£18
101 hours or more	£26

The simplified home-working rate doesn't include telephone or internet costs, which may be claimed separately for their business use.

Top tip: Compare the simplified method with the eligible proportion of actual costs to see which suits your circumstances.

3. Business travel and mileage

Business-related travel can be deductible, but private journeys and ordinary home-to-work travel generally aren't.

Depending on your vehicle and accounting method, you may be able to use simplified mileage expenses or eligible actual vehicle costs.

Keep a record of the date, destination, business purpose and mileage for each journey.

4. Training and professional development

Some training costs can be allowable where they help you improve existing skills, keep up with industry developments or develop skills supporting your current business.

Training to start an unrelated new business is treated differently.

5. What can't you normally claim?

Common examples include:

Everyday clothing that isn't qualifying protective clothing or a uniform
Personal shopping
Client entertainment
Fines and penalties
The private-use proportion of mixed expenses

It's important to separate genuine business spending from personal spending.

6. Don't forget the £1,000 trading allowance

Some individuals may benefit from the £1,000 trading allowance instead of deducting actual business expenses.

You cannot use the trading allowance and also deduct the same trade's actual expenses.

For businesses with more than £1,000 of allowable expenses, using actual expenses may be more beneficial. The right choice depends on your circumstances.

Your five-minute expense check

Before preparing your tax return, ask yourself:

Have I checked both business and personal bank accounts?
Have I included business software and subscriptions?
Have I recorded my business mileage?
Have I considered eligible home-working costs?
Have I kept receipts and evidence for my claims?

Make managing your business expenses easier

Riley Business Tools offers practical digital downloads designed to help UK sole traders stay organised, record expenses and understand their finances.

Explore our expenses guide, bookkeeping spreadsheet and sole trader tax-saving resources.

Browse Riley Business Tools on Etsy ↗

Riley Business Tools creates practical tools using the experience of the team behind Riley Accountancy.

Official guidance: HMRC — Expenses if you're self-employed and HMRC — Simplified expenses.

General information only. Tax relief depends on individual circumstances, the accounting method used and applicable HMRC rules. This article does not constitute personalised tax advice. No liability is accepted for reliance on this general information.

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