Allowable expenses cheat sheet for UK sole traders
A one-page guide to what you can claim. Print it or save it as a PDF.
Sole trader expenses cheat sheet (UK)
Costs must be incurred wholly and exclusively for your business. Keep a receipt or invoice for everything. General information, check GOV.UK.
Usually allowable
- Office costs: stationery, postage, printing, software, small equipment
- Travel: fuel, parking, fares, hotels for business trips (not normal commuting)
- Staff and subcontractors: wages, agency fees, subcontractors
- Stock and materials: goods bought to resell or to make what you sell
- Financial costs: bank and card charges, business insurance, accountancy fees
- Premises: rent, rates, utilities, property insurance
- Marketing: website, advertising, business cards, directory listings
- Training: courses that maintain or update skills you already use
- Phone and internet: the business share of the bill
Working from home (choose one method)
- A share of real household costs, or
- Simplified flat rate per month: £10 (25 to 50 hours), £18 (51 to 100 hours), £26 (101+ hours)
Vehicles
- Actual running costs plus capital allowances, or
- Simplified mileage: 45p a mile for the first 10,000 business miles, 25p after (cars and vans); 24p for motorcycles
- Keep a log: date, destination, purpose, miles
Larger equipment
- Laptops, machinery and vehicles are usually claimed through capital allowances
Not allowable
- Entertaining clients
- Fines and penalties
- Personal spending and the personal share of mixed costs
- Ordinary clothing (uniforms and protective gear are allowed)
- Your own wages or drawings
Trading allowance
- £1,000 allowance instead of deducting actual expenses if gross income is small. You cannot claim both.
From AvrioBooks, cloud accounting for small businesses. avriobooks.com
Go deeper
Read the full guide to allowable expenses for sole traders, and use our self-employed tax calculator to estimate your bill.
Frequently asked questions
Is this cheat sheet free?
Yes. There is no sign-up and no email needed. Use the Print button and save it as a PDF.
Is this tax advice?
No. It is a general guide. Check GOV.UK or ask an accountant about your own situation.
Where can I read more?
See our full guide to allowable expenses for sole traders.
How do I track expenses automatically?
Accounting software records each cost, attaches the receipt and categorises repeat items with bank rules.
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