Claim the right expenses as a sole trader

Use this guide if you are self-employed as a sole trader and want to reduce your taxable profit legitimately before completing your Self Assessment return. Have your bank statements, receipts and any mileage notes for the tax year ready. Rules for limited companies are different, and an accountant can help with complex cases.

Step by step

1. Understand the 'wholly and exclusively' test

   In general, you can claim a cost if it is incurred wholly and exclusively for your business. Common examples include materials and stock, tools and equipment, business insurance, phone and internet use for work, accountancy fees, advertising, work clothing such as uniforms or protective gear, and business travel. Everyday clothing, ordinary commuting to a permanent workplace and personal meals usually are not allowable. Read the allowable expenses guidance for the self-employed on GOV.UK and check each category against your spending.