Expenses you can claim
as a sole trader.

As a sole trader, you only pay tax on your profit. Claiming your allowable expenses lowers that profit, and your tax bill.

The rule

You can claim costs that are wholly and exclusively for your business. If something is part business and part personal, you claim only the business share.

Common allowable expenses

• Office costs: stationery, software, phone and internet used for work.
• Travel: mileage, fuel, train and bus fares for business trips. Not your normal commute.
• Equipment: laptops, cameras and tools you use for work.
• Premises: rent and utilities, or a flat rate if you work from home.
• Professional costs: accountancy, insurance and bank charges.
• Marketing: your website, advertising and samples.

Working from home

You can claim a share of your household running costs, or use HMRC's simplified flat rate based on the hours you work from home each month.

What you can't claim

Personal spending, client entertaining and fines are not allowable.

Keep the evidence

Keep receipts and records for every expense. Under Making Tax Digital, those records need to be digital.

Every allowable expense you record is profit you don't pay tax on. Track them as you go, not at the end.