What expenses can self-employed sole traders claim?

Allowable expenses include office costs, business travel, vehicle mileage at 45p per mile, phone and internet, professional subscriptions, training, marketing, accountancy fees, insurance and equipment.

Can sole traders claim for working from home?

Yes. You can claim the HMRC simplified expenses flat rate or a proportion of actual household costs including heating, electricity, broadband and rent based on business use.

Can sole traders claim for a vehicle?

Yes. You can claim 45p per mile for the first 10,000 business miles, then 25p per mile. Alternatively, you can claim a proportion of actual running costs if the vehicle is used partly for business.

What expenses are NOT allowable for sole traders?

You cannot claim personal expenses, clothing unless protective or uniform, commuting to a permanent workplace, client entertainment or fines and penalties.

Do sole traders need to keep receipts for expenses?

Yes. HMRC requires records of all business expenses. Under MTD, these must be kept digitally. AccTek recommends using Xero to photograph and store receipts.

Accounting

What business expenses can I claim as a Sole Trader?

20 February 2026 · 3 min read

Coffee, Computers, and… Cat Costumes? What Can You Actually Claim as a Sole Trader?

Welcome back! It’s your favorite fun-loving Chartered Accountant. If you read my last post, you’re now legally registered and ready to conquer the world. But now comes the question I get asked more than “Can I have a discount?”: “Can I claim this against my tax?”

The golden rule from HMRC is that an expense must be “wholly and exclusively” for the purpose of your business. If you buy a laptop to write your blog but also use it to binge-watch reality TV… things get a little spicy.

Let’s look at what you can (and definitely can’t) claim for the 2024/25 and 2025/26 tax years.

1. The Office: More Than Just Four Walls

Whether you have a fancy studio or a “cluttered corner” in your spare room, you can claim for it.

Rent & Utilities: If you rent a dedicated office, 100% is deductible.
Working from Home: You have two choices here:
- The “Methodical” Way: Calculate the proportion of your bills (heating, electricity, council tax, mortgage interest) based on the number of rooms and time spent working.
- The “Simplified” Way: Use HMRC’s flat rates. It’s less math, which usually means more happiness.

HMRC Simplified Expenses (Working from Home)

Hours worked per month	Monthly claim amount
25 to 50 hours	£10
51 to 100 hours	£18
101 or more hours	£26

Accountant’s Tip: The flat rate doesn’t include internet or telephone! You can claim the business percentage of those bills separately on top of the flat rate.

2. Travel: The Road to (Tax) Success

You can claim for business trips, but commuting from your home to a regular place of work is a big “No.”

Public Transport: Train, bus, and even taxi fares for business meetings.
Your Own Car: Most sole traders use Simplified Mileage Rates. It’s much easier than tracking every litre of petrol and every oil change.

Simplified Mileage Rates (2024/25 & 2025/26)

Vehicle	First 10,000 miles	Over 10,000 miles
Cars and Vans	45p per mile	25p per mile
Motorcycles	24p per mile	24p per mile

3. The “Can I/Can’t I” Quick-Fire Round

Expense	Can you claim?	The “Fun” Specifics
Client Entertaining	NO	Even if it’s the most important deal ever, HMRC says no to lunching clients.
Work Uniforms	YES	Only if it’s protective gear or a branded uniform. A “nice suit” for a meeting doesn’t count!
Professional Fees	YES	Accountants (like me!), solicitors, and professional insurance.
Marketing	YES	Website hosting, Google Ads, and those business cards you hand out at parties.
Training	MAYBE	Yes, to refresh current skills. No, to learning something completely new (e.g., a plumber learning to fly a plane).

4. Real World Scenario: The “Cat Costume” Conundrum

Meet Dave. Dave is a freelance children’s entertainer. He buys a giant plush cat costume for his shows.

Can he claim it? Yes! It’s a costume for his trade.
What about his lunch? Only if he’s travelling away from his “normal” base for a show. If he’s just eating a sandwich at his desk between admin tasks? That’s a personal expense (Dave’s gotta eat regardless of the cat suit).

5. The “Simplified” vs. “Actual” Comparison

HMRC provides a handy checker to see which method saves you more.

Simplified Benefit = {Total Miles x 0.45) – Actual Fuel/Insurance/Repairs

If the number is positive, stick to simplified!

The Golden Takeaway

Keep. Your. Receipts. Digital apps like Xero make this easy by letting you snap photos on the go. If you don’t have proof, HMRC can disallow the claim, and suddenly that “tax saving” becomes a “tax bill.”