Allowable expenses — what the self-employed can claim

The most common allowable expenses

• Tools, equipment and materials used for work
• Business travel and vehicle costs (mileage rate or actual costs)
• Protective clothing and uniforms (not everyday clothes)
• Phone and internet — the business proportion
• Professional insurance, trade memberships
• Accountancy, software, business bank charges
• Working from home — a share of household bills

The "wholly and exclusively" rule

An expense is allowable when it serves the business. Mixed-use costs (phone, car, home) are claimed proportionally — you deduct the business share and must be able to justify the split.

Working from home

Two routes: HMRC’s flat rate (a set monthly amount based on business hours worked at home) or a proportional calculation of actual bills (electricity, heating, internet). Pick whichever works out better and apply it consistently.

Vehicles — two methods

Claim 45p per business mile (25p above 10,000 miles a year), or actual running costs (fuel, insurance, servicing, MOT) in the business-use proportion plus capital allowances. You cannot mix methods for the same vehicle — see our dedicated guide.

What you usually CANNOT claim

• Purely private spending
• Everyday clothing, even if worn for work
• Fines and penalties
• Client entertainment (generally disallowed)

Documentation is money

Without a receipt or invoice, HMRC can disallow the cost — and you pay more tax. Capture evidence as you go: forward the invoice email or photograph the receipt at purchase. The data is extracted and categorised automatically, so no expense you actually paid for goes unclaimed.