What Expenses Can a Sole Trader Claim in the UK?
- Skyrock Accountants
- Nov 27, 2025
- 3 min read
Updated: 48 minutes ago
If you’re a sole trader, one of the most important ways to reduce your tax bill legally is by claiming allowable business expenses.
The basic rule from HMRC is simple:
👉 You can claim expenses that are “wholly and exclusively” for your business.
This means the expense must be for business purposes only. If something is partly personal, you can only claim the business portion.
HMRC guidance on allowable expenses can be found here
Let’s break this down clearly.
Why Are Tax Deductions Important?
Tax deductions matter because they:
✅ Reduce Your Tax Bill
By lowering your taxable income, you reduce the amount of tax you owe.
✅ Improve Cash Flow
Lower taxes mean more money stays in your business. That cash can be reinvested in growth.
✅ Help You Track Your Finances
When you understand deductions, you naturally keep better records and stay organised.
The Most Common Sole Trader Expenses You Can Claim
Below are the main categories most sole traders are entitled to claim.
1️⃣ Office & Running Costs
You can claim everyday costs of running your business, including:
Stationery and printing
Postage
Business phone bills (business use only)
Internet (business portion)
Software subscriptions
Website hosting
Cloud storage
These are ordinary, necessary costs of trading.
2️⃣ Working From Home
If you run your business from home, you may claim part of:
Electricity and gas
Rent or mortgage interest (business portion)
Council tax (business portion)
Broadband (business use)
HMRC allows simplified flat-rate claims or actual cost calculations. Official guidance here:
3️⃣ Travel & Vehicle Expenses
You can claim business travel, including:
Fuel
Insurance (business portion)
Repairs and servicing
Parking fees
Train and flight tickets
Hotels for business trips
You cannot claim normal commuting to a permanent workplace.
Vehicle expense rules are explained here
4️⃣ Equipment & Tools
You can claim:
Laptops and computers
Mobile phones (business use)
Office furniture
Machinery and tools
These often qualify under capital allowances.Guidance here:
5️⃣ Marketing & Advertising
Allowable marketing expenses include:
Website design
Google Ads
Social media advertising
Branding and logo design
Business cards
If it promotes your business, it is usually deductible.
6️⃣ Professional Fees
You can claim:
Accountant fees
Legal advice
Business insurance
Trade subscriptions
Professional fees directly related to your trade are allowable.
7️⃣ Staff & Subcontractor Costs
If you employ staff, you can claim:
Wages
Employer National Insurance
Pension contributions
Subcontractor payments
You cannot claim “wages” paid to yourself as a sole trader.
What You Cannot Claim
You generally cannot claim:
Personal expenses
Everyday clothing
Client entertainment
Fines or penalties
Even if you wear clothes only for work, normal clothing is not allowable.
Why Getting This Right Matters
Many sole traders either:
❌ Underclaim and overpay tax
❌ Overclaim and risk HMRC penalties
Understanding what you can legitimately deduct protects your business and reduces your tax bill legally.
Sole Traders in Kent & Maidstone
If you are a sole trader in Kent, especially in Maidstone or surrounding areas, reviewing your expenses properly can make a significant difference to your tax position.
We regularly see:
Missed home office claims
Incorrect vehicle expense calculations
Overlooked software subscriptions
Mixing personal and business spending
Even small adjustments can add up over a full tax year.
Need Help Reviewing Your Sole Trader Expenses?
At Skyrock Accountants, we help sole traders across Kent and the UK to:
Identify missed deductions
Ensure expenses meet HMRC rules
Reduce tax legally
Prepare accurate Self Assessment returns
Plan ahead for Making Tax Digital
If you’re unsure whether you’re claiming everything you’re entitled to — or worried you may be claiming incorrectly — it’s worth reviewing now rather than facing issues later.
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