What Expenses Can I Claim as Self-Employed?
- Kyle Randall
- 6 days ago
- 3 min read
Understanding Self-Employed Business Expenses
If you’re self-employed, one of the most important things to understand is what expenses you can claim.
Claiming legitimate business expenses reduces your taxable profit, which means you may pay less tax to HMRC.
Many people either miss expenses they could claim or worry about claiming the wrong things. In this guide, we explain which expenses self-employed people can usually claim and how they work.
What Is an Allowable Expense?
An allowable expense is a cost that is wholly and exclusively for your business.
This means the expense must be directly related to running your business.
If an expense is partly personal and partly business, you can normally only claim the business portion.
Common Self-Employed Expenses You Can Claim
Many self-employed people can claim expenses such as:
Office supplies
Business software
Marketing and advertising
Website hosting
Professional services (like accountants)
Business insurance
These are considered typical costs of running a business.
Travel and Transport Costs
If you travel for business purposes, you may be able to claim:
Mileage when using your car for work
Train or bus travel
Parking costs
Business travel accommodation
However, commuting to a regular place of work is not usually allowable.
Working From Home Expenses
If you run your business from home, you may be able to claim part of your household costs, such as:
Electricity
Heating
Internet
Phone bills
Many self-employed people claim a simplified home office allowance to make this easier.
Equipment and Tools
Items you purchase for your business may also be claimable, including:
Laptops or computers
Cameras or specialist equipment
Tools for trades
Office furniture
These costs are normally deducted from your profits.
Professional and Financial Costs
Self-employed businesses often claim costs such as:
Accountant fees
Legal advice
Banking fees
Payment platform charges
These expenses relate directly to managing the business.
What Expenses Can’t You Claim?
Some costs are not allowable, including:
Personal expenses
Fines or penalties
Clothing for everyday wear
Personal travel
HMRC expects expenses to be genuinely related to your business activities.
Why Keeping Good Records Matters
You should always keep clear records of your business expenses.
This usually includes:
Receipts
Invoices
Bank statements
Accounting records
Good record-keeping helps ensure your Self Assessment tax return is accurate.
You can learn more about this on our Self Assessment services page.
Official HMRC Guidance
You can find official guidance on self-employed expenses on the HMRC website:
How VIP Accounting Ltd Can Help
At VIP Accounting Ltd, we help self-employed individuals across Benfleet, Essex and the UK with:
Identifying allowable business expenses
Preparing Self Assessment tax returns
Managing bookkeeping
Reducing tax legally
Staying compliant with HMRC
If you’re unsure what expenses you can claim, speak to our team via our contact page.
FAQs
Do I pay tax on my total income as self-employed?
No. You normally pay tax on your profits after expenses.
Do I need receipts for business expenses?
Yes. Keeping records helps support your tax return if HMRC asks for evidence.
Can I claim my phone bill?
You can usually claim the business portion of your phone usage.
Can I claim food as a business expense?
Generally only when travelling for business.
Who Wrote This Article
Kyle Randall, Founder of VIP Accounting Ltd, provides clear guidance to help individuals and business owners understand UK tax and manage their finances effectively.
VIP Accounting Ltd is a strategic accounting and tax advisory firm based in Benfleet, Essex, supporting self-employed individuals and businesses across the UK with Self Assessment, tax planning, accounting, and HMRC compliance.
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