Which expenses can I claim when Self-employed

If you’re self-employed, there are a number of expenses you claim (depending on your occupation). Claiming expenses will reduce the amount of tax you pay.

There are two main ways in which you’ll be able to claim your self-employed expenses.

Claiming the Trading Allowance

The first way is to simply claim a flat £1,000 as a self-employed Trading Allowance. Self-employed earnings up to £1,000 are generally not taxable profit.

• All sole traders qualify: construction workers, freelancers, etc.

• You don’t need to worry about keeping receipts

• It’s super easy to do!

⚠️ If you choose this to claim this allowance, you won’t be able to claim any other expenses or allowances. ⚠️

Claiming business expenses

If your total expenses are over £1,000 per tax year, it’ll probably make more sense to claim business expenses to cover your business costs. If you claim business expenses, you won’t be able to claim the Trading Allowance.

For this, don’t forget to keep an in depth record of them, along with all your business receipts. Bank statements can sometimes work instead, but it’s best to stay on the safe side!You claim on your Self Assessment tax return, so make sure you register for it with HMRC if this is your first one.

What specific expenses can I claim?

Type of expense	​Can I claim it?	How much can I claim?
Home rent	Yes	​Either claim the percentage that you use your home for work, or a flat home office allowance.
Office Rent/ Co-working space	Yes	100%
Home insurance, home utilities( electric bill, phone bill etc ), home repairs	Yes	Same as for home rent
Office decorations	Yes	100%
Home mortgage payments	Not really	Only a part of the interest on mortgage – similar to how you claim rent.
Laptop for work, antivirus, office software, paper and pens for work & printing	Yes	100%
Phone for work	Yes	100%
​Protective gear for construction work	Only if your contractor is not already providing you with it	100%
Special uniform	Only if your contractor is not already providing you with it	100%
Business unit	No	N/A​
Car insurance, fuel & parking fees	Yes	​Use the percentage that you use your car for work. Keep the invoice. Or just use the flat mileage allowance
Taxi fares	Yes	Only for trips for work
Personal travel , parking fines and travelling from home to regular workplace.	No	N/A
​Hiring other people	Yes	100%
​Buying goods for resale (e.g. on eBay)	Yes	100%
​Buying raw goods for production (e.g. you’re making and selling hats on Etsy)	Yes	100%
Accountant fees	Yes	100%
​Bank, overdraft, and credit card fees	Yes	​If you’re using cash basis then you can only claim up to £500. Otherwise 100%
Interest on loans	Only if they are for work	100%
Leasing payments	Only if they are for work	100%
Business insurance	Only if they are for work	100%
Bad customers	Only if your traditional accounting	100%
​Advertising (newspapers, local Google Ads, etc.)	Yes	100%
​Website development, hosting, domain name, etc.	Yes	100%
Meals with clients or suppliers	Yes	100%
Drinks with clients or suppliers	No	N/A