Last updated: 18 October 2026
Self-employed expenses: what you can claim in 2026/27
As a sole trader, you pay tax on your profit, not your turnover. Every allowable expense you claim lowers your tax and National Insurance bill. To be allowable, a cost must be "wholly and exclusively" for your business. Here is a summary to use alongside our guide above.
Common allowable expenses
- Office costs – stationery, phone and broadband (the business share), software and subscriptions.
- Travel – fuel, train and bus fares, parking and hotels for business trips. Not your normal commute.
- Stock and materials – goods bought to resell or use in your work.
- Staff costs – wages, subcontractors and employer pension contributions.
- Financial costs – bank charges, business insurance and accountancy fees.
- Marketing – website, advertising and business cards. Client entertaining is not allowable.
- Clothing – uniforms and protective clothing only, not everyday clothes.
- Training – courses that update skills you already use in the business.
See the full list of allowable expenses for more examples.
Simplified expenses
Instead of working out actual costs, sole traders can use HMRC's flat rates:
- Mileage – 55p a mile for the first 10,000 business miles in a car or van, then 25p. The 55p rate applies from 6 April 2026.
- Working from home – £10 a month for 25 to 50 hours of business use, £18 for 51 to 100 hours, and £26 for 101 hours or more.
- Living at your business premises – a flat-rate deduction for private use, for example if you run a B&B.
Equipment and capital allowances
Items you keep and use in the business, such as laptops, tools and vans, are usually claimed through the Annual Investment Allowance, which gives 100% relief on up to £1 million a year. Under the cash basis (now the default for sole traders), most equipment can simply be deducted as an expense. Cars are treated differently.
The £1,000 trading allowance
If your expenses are low, you can deduct a flat £1,000 instead of your actual costs. You can't claim both.
Self-employed expenses FAQs
What records do I need to keep?
Keep receipts, invoices and bank statements for at least 5 years after the 31 January filing deadline. Under Making Tax Digital, records must be kept digitally.
Can I claim for my mobile phone?
Yes, the business share. If the contract is only for business use, you can claim all of it.
Can I claim the cost of lunch?
Not your everyday lunch. Meals are allowable only on business trips away from your normal place of work.
Are you claiming everything you're entitled to? Our self-employed accountants review your costs and file your return for a fixed fee. Read our self-employment guide, get a quick quote or call 0800 644 1258.