What Expenses Can I Claim as a Sole Trader?
- Kyle Randall
- Dec 11, 2025
- 3 min read
What You Can and Can’t Claim as a Sole Trader
When you’re self-employed, knowing which expenses you can claim is one of the simplest ways to reduce your tax bill. But many sole traders either:
Claim too little and pay more tax than necessary
Claim too much and risk HMRC penalties
In this guide, we’ll break down the most common allowable expenses, what you can’t claim, and how to stay compliant — all in simple terms.
What Counts as an Allowable Expense?
An allowable expense is a cost that is wholly and exclusively for running your business.
If an expense helps you earn money — and isn’t for personal use — you can usually claim it.
Common Expenses You Can Claim as a Sole Trader
1. Office, Equipment & Supplies
You can claim expenses for things you use to run your business, including:
Laptop or computer
Printer, ink, stationery
Office furniture
Software subscriptions (e.g., accounting, editing, design tools)
If you use these items partly for personal use, only claim the percentage related to business.
2. Travel & Mileage
If you travel for work, you can claim:
Mileage (45p per mile for the first 10,000 miles, then 25p after)
Parking
Public transport
Accommodation for business trips
You cannot claim commuting to a regular place of work — only business journeys.
3. Working From Home Costs
If you run your business from home, you can claim a portion of:
Heating
Electricity
Rent
Council Tax
Internet
Mobile phone bills
Many sole traders use HMRC’s simplified flat-rate system if they want an easier method.
4. Marketing & Advertising
You can claim costs for promoting your business, such as:
Website hosting
Domain names
Online advertising
Social media promotion
Business cards, branding, graphics
5. Professional Fees
Expenses you can claim include:
Accountant fees
Bookkeeping costs
Legal fees related to your business
Business insurance
6. Stock & Materials
If your business sells goods or creates products, you can claim:
Raw materials
Items you resell
Packaging
Postage and delivery costs
7. Training & Development
You can claim for courses that:
Update your existing skills
Improve knowledge for your current business
You cannot claim for training that prepares you for a completely new career.
What You Cannot Claim as a Sole Trader
Some costs are simply not allowable, even if you feel they relate to work.
These include:
Personal clothing (unless it’s protective gear or a uniform)
Personal car expenses (outside the business mileage claim)
Entertaining clients
Fines or penalties
Payments for your personal living costs
If an expense benefits you personally, HMRC will reject it.
How to Keep Records for Your Expenses
HMRC requires you to keep accurate records of all business expenses. This includes:
Receipts and invoices
Mileage logs
Bank statements
Digital records (if using Making Tax Digital software)
Good records mean:✔ higher accuracy✔ lower tax bills✔ less risk during an HMRC review
When Claiming Expenses Can Reduce Your Tax Bill
Allowable expenses reduce your taxable profit, not your total income.
For example:
Income: £40,000
Expenses: £10,000
You only pay tax on £30,000.
This is why understanding expenses is crucial to tax efficiency.
How VIP Accounting Ltd Can Help
At VIP Accounting Ltd — based in Benfleet, Essex — we help sole traders:
Identify which expenses they can and cannot claim
Keep compliant records
Reduce tax liabilities
Prepare and submit Self Assessment tax returns
Understand tax reliefs and allowances they may be missing
If you’d like help maximising your allowable expenses, get in touch via our contact page.
FAQs
Can I claim my mobile phone bill?
Yes — but only the percentage used for business.
Can I claim clothing?
Only if it’s protective gear or a branded uniform.
Can I claim food costs?
Only when travelling for business or working away from your usual place of work.
Do I need receipts for every expense?
Yes — HMRC can request proof at any time.
VIP Accounting Ltd is a strategic accounting and tax advisory firm based in Benfleet, Essex, helping sole traders and business owners across the UK with tax planning, Self Assessment, bookkeeping, and full HMRC compliance.
Authour
Kyle Randall - Founder & Accountant
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