If you’re self-employed, one of the most common questions is:
“What can I actually claim as an expense?”
Getting this right is important. Claiming the correct expenses can reduce your tax bill—but claiming the wrong things can cause problems if HMRC ever asks questions.
The key rule is simple:
You can claim expenses that are wholly and exclusively for your business.
What does “wholly and exclusively” mean?
It means the expense must be for business use—not personal use.
Some costs are clearly business-related, while others are more of a grey area.
Common expenses you can usually claim
Office and running costs
Office supplies (stationery, printer ink, etc.)
Business phone and internet costs
Software and subscriptions
Postage
Travel costs
Fuel (for business journeys)
Parking
Train or bus fares
Taxis for business trips
Travel must be for business purposes—not commuting to a regular place of work.
Professional costs
Accountancy fees
Legal fees
Insurance (e.g. public liability)
Professional memberships
Marketing and advertising
Website costs
Social media advertising
Business cards and promotional materials
Equipment and tools
Laptops and phones (business use)
Tools and equipment needed for your work
Expenses that are often misunderstood
Working from home
You can claim a portion of:
electricity
heating
internet
Or use HMRC’s simplified flat rate.
Phone and internet
If you use your phone for both personal and business use, you can only claim the business portion.
Clothing
You can claim:
uniforms
protective clothing
But not everyday clothing—even if you wear it for work.
Food and drink
Generally not allowable unless:
you’re travelling for work
it’s part of a business trip
What you can’t claim
Some common examples include:
personal expenses
fines and penalties
everyday clothing
costs that aren’t clearly linked to your business
Keeping proper records
It’s important to:
keep receipts
track your expenses regularly
separate business and personal spending where possible
This makes everything easier at year end and helps avoid issues later.
So, what should you be doing?
If you’re unsure about an expense, it’s always better to check before claiming it.
Getting it right:
avoids problems with HMRC
makes your accounts more accurate
and ensures you’re not paying more tax than you need to
Need help with your expenses?
If you’re a sole trader and want to make sure you’re claiming the right expenses, we’re happy to help.
If you’re based in Newcastle, Gateshead or the wider Tyne Valley, get in touch or book a call to talk it through.
