If you’re self-employed, you’re likely aware that claiming legitimate business expenses can significantly reduce your tax bill. However, many sole traders and freelancers leave money on the table simply because they don’t realise what they can claim. It’s not about finding loopholes, it’s about understanding your entitlements and keeping accurate records.

At Integra, we regularly review self-assessment returns and notice common patterns. Clients often miss out on hundreds, sometimes thousands, of pounds in tax relief each year. The good news? Once you know what you can claim, it becomes second nature to track these expenses throughout the year.

Let’s explore the allowable expenses that frequently slip through the cracks.

Working from home? Don’t forget these costs

If you run your business from home, even partially, you’re entitled to claim a portion of your household expenses. Many self-employed individuals either don’t claim at all or significantly underestimate what they’re entitled to.

You have two options for claiming home office expenses:

Simplified expenses method: HMRC allows you to claim a flat rate based on hours worked from home. For example, if you work 25-50 hours per month from home, you can claim £10 per month without any calculations or receipts. Work between 51-100 hours? That increases to £18 per month. This method is straightforward and requires minimal record-keeping.

Actual costs method: Alternatively, you can calculate the proportion of your home used for business and claim that percentage of your household bills. This includes rent or mortgage interest, council tax, utilities, broadband, and home insurance. If your office occupies 15% of your home’s floor space, you can claim 15% of these costs.

Which method should you choose? It depends on your circumstances. Those working long hours from dedicated home offices typically benefit more from the actual costs method, whilst those working fewer hours or using shared spaces often find the simplified method more beneficial.

Are you claiming all your travel expenses?

Travel costs are amongst the most commonly under-claimed expenses. The confusion often stems from understanding what counts as business travel versus ordinary commuting.

Vehicle expenses: If you use your own car for business purposes, you can claim mileage at HMRC’s approved rates, currently 45p per mile for the first 10,000 business miles, then 25p thereafter. This covers fuel, insurance, servicing, MOT, and wear and tear. Keep a detailed mileage log noting the date, destination, purpose, and miles travelled for each business journey.

Alternatively, if you prefer tracking actual costs, you can claim the business proportion of your vehicle expenses, including fuel, insurance, road tax, repairs, and lease payments. However, this requires meticulous record-keeping and calculation of business versus private usage.

Public transport and parking: Train tickets, bus fares, taxi rides, and parking fees for business journeys are fully allowable. Meeting a client across town? That’s correct. Travelling to a networking event? Claimable. Attending a course to develop your professional skills? Also claimable.

Hotel accommodation and subsistence: If your business requires overnight stays, you can claim hotel costs and reasonable meal expenses. The key word here is “reasonable”, HMRC expects claims to be proportionate to the circumstances.

One crucial point: your regular journey from home to your usual place of work doesn’t count as business travel. However, if you travel from home to a client’s premises or a temporary workplace, that’s a business journey.

Professional memberships and subscriptions that count

Professional development isn’t just good for your business, it’s tax-deductible too. Yet many self-employed professionals forget to claim these costs.

Professional body memberships: Subscriptions to industry bodies, trade associations, and professional organisations directly related to your work are allowable expenses. Whether you’re a member of a chartered institute, a trade union, or a professional network, these fees can be claimed.

Industry publications and resources: Magazines, journals, newsletters, and online subscriptions relevant to your industry are claimable. This includes specialist software subscriptions, research databases, and online learning platforms that enhance your professional knowledge.

Training and courses: Costs for courses that update or refresh existing skills relevant to your current business are allowable. This might include short courses, workshops, webinars, or conference fees. However, courses that provide entirely new skills to help you start a different business aren’t allowable.

Professional indemnity insurance: If your profession requires professional indemnity or public liability insurance, these premiums are fully tax-deductible.

Technology and equipment: More than just a laptop

In today’s digital economy, technology expenses can be substantial, yet they’re often under-claimed or incorrectly categorised.

Computers and equipment: Laptops, desktop computers, tablets, monitors, printers, and scanners used for business can all be claimed. For items costing less than £1,000, you can typically claim the full cost in the year of purchase through the Annual Investment Allowance. More expensive items may need to be claimed over several years as capital allowances.

Software and applications: Accounting software, design tools, project management systems, antivirus protection, and cloud storage subscriptions are all allowable. If you pay monthly for services like Adobe Creative Cloud or Microsoft 365, these ongoing costs are fully deductible.

Website and online presence: Domain registration, web hosting, website design, and maintenance costs are all allowable. If you pay for email marketing services, social media management tools, or SEO services, these are business expenses too.

Other commonly missed expenses

Beyond these main categories, several other expenses frequently go unclaimed:

Bank charges and financial costs: Bank charges on your business account, credit card fees for business purchases, and interest on business loans are all allowable.

Marketing and advertising: Business cards, flyers, online advertising, sponsored social media posts, and promotional materials can all be claimed.

Stationery and office supplies: Pens, paper, envelopes, stamps, and printer ink might seem trivial, but they add up over the years.

Professional fees: Fees paid to accountants, bookkeepers, solicitors, and other professionals for business advice are tax-deductible.

Keeping records that stand up to scrutiny

Understanding what you can claim is only half the battle. To satisfy HMRC, you need proper documentation. Keep receipts, invoices, and bank statements for all business expenses. Digital records are acceptable, many self-employed people now photograph receipts and store them in cloud-based accounting software.

HMRC requires you to keep business records for at least five years after the 31st January submission deadline for the relevant tax year. Good record-keeping not only supports your tax return but also gives you better insight into your business finances.

Getting your claims right

Claiming allowable expenses reduces your taxable profit, which in turn reduces your Income Tax and National Insurance contributions. However, expenses must be incurred “wholly and exclusively” for business purposes. If an expense has both business and personal elements, you can claim the business proportion.

When in doubt, it’s worth consulting with a qualified accountant who understands the nuances of self-employment taxation. At Integra, we help self-employed clients identify all their allowable expenses and ensure their claims are accurate and compliant with HMRC requirements.

The January self-assessment deadline approaches quickly each year. By understanding what you can claim and maintaining good records throughout the year, you’ll not only reduce your tax bill but also make the process far less stressful. Don’t leave money on the table, claim what you’re entitled to.

If you’d like support with your self-assessment return or advice on maximising your tax relief, our experienced team is here to help. Get in touch with Integra today, and let’s ensure you’re claiming every allowable expense.

People Also Ask

Q1. What expenses can I claim as self-employed in the UK?
A1. You can claim expenses incurred wholly and exclusively for business purposes, including home office costs, travel, professional subscriptions, equipment, marketing, and bank charges. Keep detailed records and receipts for all claims to satisfy HMRC requirements.

Q2. Can I claim mileage if I’m self-employed?
A2. Yes, self-employed individuals can claim 45p per mile for the first 10,000 business miles annually, then 25p per mile thereafter. Alternatively, claim actual vehicle costs based on business usage percentage. Maintain a detailed mileage log for HMRC.

Q3. How much can I claim for working from home self-employed?
A3. Use HMRC’s simplified expenses (£10-26 monthly based on hours) or calculate actual costs by claiming the business proportion of rent, mortgage interest, utilities, council tax, and broadband. Choose the method that provides greater tax relief for your circumstances.

Q4. What technology expenses can self-employed claim?
A4. Self-employed individuals can claim computers, laptops, tablets, business software subscriptions, mobile phones, office equipment, and website costs. Items under £1,000 qualify for Annual Investment Allowance, allowing full first-year deduction. Keep all purchase receipts and invoices.

Q5. Do I need receipts for self-employed expenses?
A5. Yes, HMRC requires proof of all business expenses. Keep receipts, invoices, and bank statements for at least five years after the 31st January submission deadline. Digital records, including photographed receipts stored in accounting software, are acceptable.