What expenses can you claim as a sole trader?

Checked against gov.uk on 4 July 2026. When the rules change, this page changes.

If you're a UK sole trader, you deduct the costs of running your business from your income before tax is worked out. HMRC calls these allowable expenses: costs incurred wholly and exclusively for the business. Claiming everything you're entitled to is the simplest legal way to stop overpaying tax, and lost receipts are where most people quietly leak money.

What you can claim

The everyday categories, with the examples HMRC's own rules point to:

Category	What it covers
Materials and supplies	Timber, paint, fabric, ingredients, hair colour. The things that go into the work or get used up doing it.
Tools and equipment	Drills, saws, a camera, a salon chair, and repairs to them.
Vehicle	Either the actual running costs of your van or car, or HMRC's flat rate per business mile. One or the other, never both.
Travel	Parking, tolls, congestion charge, trains, taxis. Claimable on top of mileage.
Phone and internet	The business share of your phone and broadband.
Office, software and stationery	Printing, postage, paper, and software subscriptions.
Advertising and marketing	Ads, flyers, signage, listings, your website.
Insurance	Public liability, professional indemnity, tools cover.
Premises	Workshop or unit rent, business rates and utilities, or the working-from-home flat rates.
Subcontractors and staff	A subbie, a labourer, a freelancer you bring in.
Professional fees	Accountant, bookkeeper, solicitor, surveyor.
Bank and finance charges	Account fees, card-reader fees, interest on business borrowing.
Training	Keeping existing skills current: refreshers and ticket renewals. Not learning a brand-new trade.

The ones that catch people out

Client entertaining: never. Meals or hospitality for clients, suppliers or your team are not deductible for a sole trader, full stop. It's the most commonly mis-claimed expense in the country.

Everyday clothes: no, even if you only wear them for work. A suit for meetings is not claimable. Protective gear and branded uniform, like hi-vis, safety boots or embroidered polos, is.

Commuting: no. Job sites: yes. Travel between home and a regular workplace is not a business journey. Travel to temporary job sites, between jobs, or to pick up materials is.

An ordinary lunch: no. Food on a normal working day is on you. Meals and a place to stay when you're working away overnight are claimable.

A brand-new skill: no. A refresher or renewal for the trade you're in is claimable. A course to enter a different line of work isn't.

What a claim is actually worth

An expense reduces your taxable profit, not your tax bill pound for pound. A £100 expense doesn't hand you £100 back: for a basic-rate trader paying 20% Income Tax plus 6% Class 4 National Insurance, £100 of allowable expenses saves about £26 in tax. Real money, just not the sticker price. Anyone promising you the full amount back is selling something.

Quick answers

Can I claim a phone I also use personally?
Yes, the business share. If roughly half your calls and data are work, half the bill is a business expense. Pick a fair split and apply it consistently.

Can I claim lunch with a client?
No. Entertaining clients, suppliers or customers is never deductible for a sole trader, however genuine the business reason. Record it, claim nothing.

Do I need to keep receipts?
Yes. Your records must back up every figure on your return, kept for at least 5 years after the 31 January deadline. Under Making Tax Digital the records themselves are digital: amount, date and category for every transaction.

What is the trading allowance?
The first £1,000 of self-employment income in a tax year is tax free. It matters most when you're starting out or earning on the side.

Get all of this handled for you

Snap receipts as you get them. Drive like you always do. Invoice from your phone. SoleTax turns all of it into MTD-ready digital records, and shows the tax building as you go. 14 days free, no card needed.

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Sources: HMRC's SA103F Notes (2026 edition), the Business Income Manual, and gov.uk guidance on expenses if you're self-employed. Checked on 4 July 2026.