What Expenses you can claim as Self-employed

PHS Team

24 Feb, 2025

As a self-employed individual, managing your finances efficiently is key to ensuring your business remains profitable and compliant with tax regulations. 

By claiming the appropriate expenses, you reduce your taxable income, which can lower your tax bill. 

Understanding self employed allowable expenses list UK? you can claim and maintaining accurate records ensures tax compliance helps avoid penalties, and can improve profitability.

Essential Self-Employed Expenses to Claim

Some self employed allowable expenses are office costs, food, clothes etc. Here's a breakdown of self employed allowable expenses list UK? you can claim to reduce your taxable income:

1. Business Vehicle Expenses
2. Office Expenses
3. Travel and Subsistence
4. Marketing and Advertising
5. Professional Services
6. Training and Development
7. Insurance

1. Business Vehicle Expenses

For self-employed individuals who use a vehicle for business purposes, many vehicle-related expenses are deductible. These can include fuel, insurance, repairs, maintenance, and vehicle depreciation.

There are two main methods for claiming vehicle expenses:

• Actual Costs: You can claim the full cost of fuel, repairs, insurance, and other expenses related to your vehicle’s use for business. However, this requires correct record-keeping.
• Mileage Allowance: Alternatively, you can claim a flat rate per mile driven for business purposes. The rates vary depending on the vehicle type but are generally easier to track, especially if you use your vehicle for both personal and business purposes.

2. Office Expenses

Whether you work from a dedicated office space, from home, or a combination of both, you can claim various office expenses.

If you work from home, you can claim a proportion of your rent, utilities, phone bills, and internet expenses based on the space used for business. 

Items such as computers, software, office furniture, and stationery are all eligible for deductions. The cost of equipment that will be used for more than a year can typically be claimed as capital allowances, spreading the expense over its useful life.

3. Travel and Maintenance

When you travel for business purposes, there are several self employed expenses you can claim:

• Travel Expenses: Costs for public transport, taxis, flights, or driving your vehicle are claimable.
• Overnight Stays: If you need to stay overnight while travelling for business, accommodation and meals are deductible, along with any incidental expenses such as parking fees or tolls.

• Meals with Clients: If you take clients out for meals to discuss business, these costs can be claimed as long as they’re genuinely business-related.

For international travel, the rules are the same, however, it’s important to keep detailed records for customs and tax compliance.

4. Marketing and Advertising

Marketing expenses are essential for business growth and are therefore claimable. 

Online Marketing, includes the costs of Google Ads, social media campaigns, and SEO services.

Promotional Items, the cost of branded business items like business cards, giveaways, and promotional materials for events can be claimed as well.

Investing in marketing and advertising for your business is a key part of staying competitive.

5. Professional Services

Self employed allowable expenses often rely on external professional services to help run their businesses. These costs are fully deductible and can include:

• Legal Fees: Costs for legal advice related to business contracts, trademarks, or other legal matters.
• Accounting Services: Fees paid to accountants for tax filings, bookkeeping, or general business advice.
• Consultancy: If you hire consultants to improve your business, those expenses are also deductible.

Additionally, subscriptions for business-related software or memberships in professional organisations or industry groups are claimable, as they are necessary for the operation of your business.

6. Training and Development

The costs of improving your professional skills are deductible as long as they relate to your current business activities.

If you attend business-related training, and seminars, or obtain certifications, the costs can be claimed. This includes both in-person courses and online training programs.

Business-related books and publications, as well as e-learning materials, can also be claimed as an expense.

7. Insurance

Insurance is a necessary business expense, and many premiums are deductible. These include:

• Public Liability Insurance is essential for businesses interacting with customers or clients.
• Professional security Insurance covers legal costs and claims made against you for negligent advice or services.
• If you employ anyone, this is a legal requirement and is deductible.
• If you are self-employed and the business pays for your health insurance, this can also be claimed.

Keeping up with insurance is necessary for protecting both your business and personal assets.

How to Track Your Allowable Expenses

Tracking your allowable expenses accurately is important for maximising deductions and staying compliant with tax laws.

• Utilise accounting software to automatically categorise and track your expenses. These platforms make it easy to store receipts, track mileage, and categorise purchases.
• Store all receipts and invoices related to business expenses. This documentation is essential in case of an audit.
• Maintain a record of business mileage, which can be tracked easily through apps or spreadsheets.
• Make it a habit to regularly update your records to ensure nothing is missed. Working with an accountant or using cloud-based platforms can make the process more efficient and less time-consuming.

By understanding which expenses are eligible and keeping detailed records, you can maximise your tax savings and keep your business financially healthy. 

If you're self-employed, claiming business expenses can reduce your taxable income and save you money. PHS Associates provides guidance, ensuring you maximise deductions while staying compliant with HMRC rules.

Their services include bookkeeping support, helping you track expenses like office costs, travel, and professional fees with ease. Contact us by phone at 0208 8611685 or by email at info@phs-uk.co.ukn if you need accountants. You get reliable support to optimise your tax position.