What expenses can sole traders claim in 2025/26? The complete HMRC list

Sole traders are taxed on profit, not turnover. Claiming allowable expenses correctly is one of the simplest ways to make sure your Self Assessment bill reflects the real cost of running your business.

The rule: wholly and exclusively

HMRC's core test is that a cost must be incurred wholly and exclusively for the purposes of the trade. In plain English, the business reason must be real and defensible. If something has both business and private use, you normally claim only the business share.

This does not mean every expense has to be dramatic or unusual. Everyday costs like software, stationery, phone use, mileage, and professional fees can all be valid if they support the business and you keep records.

Office costs

Office costs can include stationery, postage, printer ink, business software, cloud storage, and other day-to-day admin tools. If you work from home, you may also be able to claim a simplified working-from-home amount or a fair business share of household bills. See our working from home expenses guide and home office expenses calculator.

Travel and mileage

Business travel can include train fares, parking, accommodation, and mileage for business journeys. Ordinary commuting between home and a regular workplace is usually not allowable, but travel to temporary sites, clients, or business errands may be. For car mileage, read the 45p/25p mileage guide.

Equipment, tools, and machinery

Tools, laptops, machinery, cameras, and other equipment may be claimable, but larger purchases can fall under capital allowance rules rather than ordinary day-to-day expenses. If the item is plant or machinery, the Annual Investment Allowance may let you deduct the cost sooner. Our AIA guide explains that route.

Clothing

Ordinary clothing is not usually claimable just because you wear it for work. Specialist protective clothing, uniforms, branded workwear, or safety equipment may be allowable. The test is whether the item is genuinely required for the trade rather than normal everyday wear.

Training

Training can be allowable when it updates or improves skills used in your existing trade. A course that starts a completely new trade is more difficult and may not be deductible in the same way. Keep course descriptions and invoices so the purpose is clear later.

Professional and financial costs

Accountancy fees, professional memberships, insurance, bank charges, and legal costs can be allowable when they relate to the business. If a cost has mixed personal and business purpose, split it on a reasonable basis and keep a note of the method.

Marketing and website costs

Advertising, domain names, hosting, design, business cards, and directory listings are common sole trader costs. The important record is not just the receipt, but the business purpose: what service or product the spending helped you sell.

Expenses vs the trading allowance

If your expenses are small, the £1,000 trading allowance may be simpler than itemising costs. But you cannot usually claim both the allowance and actual expenses for the same trade. Read the trading allowance comparison before choosing.

How expenses affect your tax bill

Allowable expenses reduce profit. Lower profit can reduce Income Tax and Class 4 National Insurance, so the real value of an expense depends on your marginal rates. Run your profit after expenses through the self-employed tax calculator to see the effect.

Official source

HMRC's live guidance is on GOV.UK: Expenses if you're self-employed.