Self-Employed Expenses Guide 2026/27
Claiming legitimate expenses reduces your taxable profit and therefore your tax bill. Here's what self-employed individuals can and cannot claim.
The Golden Rule
Expenses must be wholly and exclusively for business purposes. Mixed-use items need apportionment.
Allowable Expenses Categories
Office & Premises
| Expense | Claimable? | Notes |
|---|---|---|
| Rent (business premises) | Yes | Full amount |
| Home office | Yes | Proportion or simplified |
| Utilities (business) | Yes | Apportioned for home use |
| Business rates | Yes | |
| Insurance | Yes | Business insurance only |
Travel & Vehicles
| Expense | Claimable? | Notes |
|---|---|---|
| Business mileage | Yes | 45p/25p or actual costs |
| Public transport | Yes | Business journeys |
| Parking (business) | Yes | |
| Accommodation | Yes | Business trips |
| Commuting | No | Home to regular workplace |
Professional Costs
| Expense | Claimable? | Notes |
|---|---|---|
| Accountant fees | Yes | |
| Legal fees (business) | Yes | |
| Professional subscriptions | Yes | |
| Training (maintaining skills) | Yes | |
| Training (new skills) | Usually no | Capital expenditure |
Equipment & Supplies
| Expense | Claimable? | Notes |
|---|---|---|
| Computer/laptop | Yes | Business use % |
| Software | Yes | |
| Office supplies | Yes | |
| Tools | Yes | For your trade |
| Stock/materials | Yes |
Home Office: Two Methods
Simplified Method
HMRC flat rates based on hours worked at home:
| Hours/Month | Monthly Rate |
|---|---|
| 25-50 hours | £10 |
| 51-100 hours | £18 |
| 101+ hours | £26 |
Actual Costs Method
Calculate proportion of home used:
- Count rooms (exclude bathrooms, halls)
- Calculate business %
- Apply to utility bills
Example: 4 rooms, 1 office = 25%
- Annual bills: £4,000
- Claimable: £1,000
Vehicle Expenses: Two Methods
Simplified Mileage
| First 10,000 miles | 45p/mile | | Over 10,000 miles | 25p/mile |
Actual Costs
Claim actual costs (fuel, insurance, repairs, depreciation) × business use percentage.
Choose carefully - once you pick a method, you generally stick with it.
What's NOT Allowable
| Expense | Why Not |
|---|---|
| Personal items | Not business |
| Fines/penalties | Against public policy |
| Client entertaining | Disallowed since 2008 |
| Normal clothing | Dual purpose |
| Childcare | Personal |
| Initial training | Capital |
Record Keeping
Keep records for at least 5 years after 31 January submission deadline:
- Receipts and invoices
- Bank statements
- Mileage logs
- Utility bills (home office)
Related Calculators
- Self-Employed Tax Calculator - Calculate your tax
- Mileage Calculator - Work out travel claims