Allowable Expenses if you are Self Employed
If you’re self-employed, there is a range of business expenses deductible against tax. Please note that you can deduct any costs which are ‘wholly and exclusively’ for the purpose of trade.
For example, you can include any of the following as business expenses:
- Travel – train / bus/ plane etc.
- Motor – mileage / parking
- Office costs – stationery / phone
- Computer –computer equipment / software
- Insurance
- Bank fees on your business account
- Advertising / marketing
- Training courses – these must be updates and not learning something new.
- Accountancy fees – only for the preparation of the sole trader accounts and not for the personal tax return
- Property costs – see below.
There may be other costs included not included on this list.
Shared personal and business use
It is worth noting that if you use your personal phone, expenses must be apportioned between business use and personal use. For example, if you use the phone 90% for business, we will include 90% of the cost. Broadband costs can be included, also applying the correct percentage of business usage.
Business assets
If you purchased assets within the last three years – and still have the receipt – we can include them in our computations. For example, if you purchased a laptop two years ago and you now use it in the business we can include it in your accounts.
Use of home
When working from home, we would estimate the percentage floor space of the room that you use. That percentage would be applied to your heating / electricity / council tax / mortgage interest or rent etc. to calculate the level of business expenses to be claimed. For example if you use 15% of your home space, we will include 15% of the costs in your business accounts.
HMRC link: https://www.gov.uk/expenses-if-youre-self-employed
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