Can I Claim This Expense? (Self-Employed)
The core HMRC test for allowable expenses, plus real examples of what's commonly claimable and what isn't.
Short answer: if an expense is incurred wholly and exclusively for your self-employed business, you can usually claim it. Personal or dual-purpose costs generally can't be claimed in full — though some (like a home office or a car used for both business and personal trips) can be claimed proportionally.
The core test HMRC applies
The rule that decides almost every borderline case is whether the cost was incurred wholly and exclusively for the purpose of your trade. If there's a personal benefit mixed in, HMRC generally expects you to apportion the cost between business and personal use rather than claim it all.
Commonly claimable expenses
- Office costs: stationery, software subscriptions, business phone/internet (apportioned if used personally too)
- Travel: fuel, parking, train/bus fares for business journeys (not your regular commute if you have a fixed base)
- Vehicle costs: either simplified mileage rates (45p/mile for the first 10,000 business miles, 25p after) or actual costs apportioned by business-use percentage
- Home office: a proportion of rent/mortgage interest, utilities and council tax based on rooms used and time spent working there, or HMRC's flat simplified rate
- Professional fees: accountancy, business insurance, relevant subscriptions and trade body memberships
- Marketing: website costs, advertising, business cards
- Equipment: tools, a laptop used for work, protective clothing/uniforms (not everyday clothing, even if worn only for work)
- Training that maintains or updates existing skills for your trade (not training for a completely new skill or trade)
Commonly disallowed or restricted expenses
- Everyday clothing — even if you only wear it for work, unless it's a genuine uniform or protective gear
- Client entertainment — meals, drinks or events for clients are not deductible for tax purposes, even though they're a real business cost
- Fines and penalties — parking tickets, late filing penalties, etc. are never deductible
- Your own wages — sole traders can't pay themselves a salary and claim it as an expense; what's left after expenses is your taxable profit
- Commuting — ordinary travel from home to a permanent place of work isn't claimable, even if you're self-employed
- Training for a new trade — a photographer training as an accountant, for example, isn't deductible; training that improves existing skills in your current trade is
Worked example
Maria is a self-employed graphic designer working from home three days a week in a dedicated spare room (one of five rooms in her flat). Her laptop, design software subscription, and business insurance are 100% claimable since they're used wholly for work. Her home internet bill of £40/month is apportioned — since one of five rooms is used for work, roughly 20% (£8/month, £96/year) is a reasonable claim, alongside a share of utilities. A new work laptop bag is fully claimable; a new outfit for client meetings is not, since ordinary clothing isn't a business expense even if bought specifically for work. Track all of this automatically with the Expense Tracker, and see the tax impact with the Sole Trader Tax Calculator.
Keeping the right records
Whatever you claim, HMRC expects evidence: receipts, invoices, bank statements, and a clear note of the business purpose for anything not obviously 100% business use. Digital record-keeping matters even more with Making Tax Digital now requiring quarterly reporting for many sole traders.
Sources: GOV.UK — Expenses if you're self-employed. This page is general guidance, not personalised tax advice — when in doubt on a specific expense, speak to an accountant.
Frequently asked questions
Can I claim my phone bill if I use it for both business and personal calls?▾
Yes, but only the business-use proportion — a reasonable estimate based on actual usage, such as 40% business use if that reflects your real pattern.
Can I claim clothing I bought specifically to look professional for client meetings?▾
No — HMRC treats ordinary clothing as a personal expense regardless of why you bought it, since it has everyday use outside work. Genuine uniforms or protective clothing are different and are claimable.
What if I'm not sure whether something counts as wholly and exclusively business use?▾
When in doubt, keep the receipt and a note explaining the business purpose, and check with an accountant or HMRC's guidance before claiming — getting this wrong can trigger a query or penalty if audited.
Can I claim training courses as an expense?▾
Only if the training maintains or updates skills you already use in your existing trade. Training for a brand new skill or different trade is treated as a capital cost, not a deductible expense.