Allowable Expenses for the Self-Employed UK

An allowable expense is a cost incurred wholly and exclusively for your business that you can deduct from your income to lower your taxable profit. It is not a refund: a GBP 100 expense cuts a basic-rate sole trader's tax bill by about GBP 26 (20% Income Tax plus 6% Class 4 NIC), not GBP 100.

Allowable expense categories and what you can claim (2026/27)

Category	What you can claim
Office costs	Stationery, phone and broadband bills, postage, printer ink and the business share of software
Travel costs	Fuel, parking, train, bus, air and taxi fares, hotel rooms and vehicle running costs (not your normal commute)
Clothing	Uniforms, branded kit, protective clothing and costumes only - not ordinary clothes you could wear day to day
Staff costs	Salaries, subcontractor costs, wages, bonuses, pensions, benefits and agency fees
Stock and materials	Goods you buy to resell, raw materials and direct production costs
Financial costs	Business insurance, bank and credit-card charges, overdraft and loan interest, and accountant or bookkeeper fees
Premises costs	Rent, business rates, utilities, property insurance and security for business premises
Advertising and marketing	Website costs, advertising, mailshots, free samples and directory listings
Training courses	Courses that keep your existing skills up to date or relate to your current business (not learning a brand-new trade)
Use of home	A reasonable share of heat, light, power, rent or mortgage interest, Council Tax and broadband - or the flat rate (see below)
Capital items	Equipment, tools, machinery and most vehicles are claimed as capital allowances, not as everyday running costs