Sole trader expenses list: everything you can claim in 2026

One of the most searched questions among sole traders is simple: what can I actually claim? HMRC allows a wide range of business expenses — but the rules aren't always obvious, and many self-employed people end up underclaiming and paying more tax than they need to.

This is a complete, up-to-date sole trader expenses list for 2026. Bookmark it, refer back to it every quarter, and make sure you're claiming everything you're entitled to.

The golden rule for sole trader expenses

Before we get into the list, the key rule is this: an expense must be wholly and exclusively for business purposes to be fully deductible. If something has a personal element as well as a business one — like a mobile phone you use for both — you can only claim the business proportion.

Keep this rule in mind as you go through the list below.

1. Office and workspace costs

Working from home

If you work from home, you can claim a proportion of your household bills including heating, electricity, broadband, and water. The calculation is based on the number of rooms used for work and the hours you work there.

Alternatively, HMRC's simplified flat rate makes it easier:

• 25–50 hours worked at home per month: £10/month
• 51–100 hours per month: £18/month
• Over 100 hours per month: £26/month

Renting office or workspace

If you rent a commercial space — a desk in a co-working space, a studio, a workshop — the full rental cost is deductible.

Office supplies

Stationery, printer ink, postage, and other consumables used for your business are all claimable.

2. Travel and vehicles

Business mileage

If you use your own vehicle for business travel, you can claim:

• 45p per mile for the first 10,000 miles per tax year
• 25p per mile after that

Keep a mileage log — HMRC may ask for evidence.

Public transport

Train tickets, bus fares, taxis, and Ubers taken for business purposes are fully claimable. Keep receipts.

Parking, tolls and congestion charges

All deductible when incurred for business travel.

What you cannot claim

Travel between your home and a regular place of work is commuting — not business travel — and is not deductible.

3. Equipment and technology

Computers, laptops and tablets

Fully deductible in the year of purchase using the Annual Investment Allowance, provided they're used for business. If you also use them personally, claim the business-use percentage only.

Phones

The business proportion of your phone bill is claimable. If your phone is used 60% for business and 40% personally, you can claim 60% of the cost.

Tools and specialist equipment

Any tools, machinery, or specialist equipment required for your trade are deductible.

Software and subscriptions

Software you use for your business — accounting tools, project management apps, design software — is fully claimable. Annual subscriptions count as an expense in the year paid.

4. Marketing and advertising

• Website costs — hosting, domain registration, web design
• Google Ads, Facebook Ads, and other paid advertising
• Business cards, flyers, and printed materials
• Photography or video for business use
• Social media management tools

All of these are claimable as marketing expenses.

5. Professional fees

• Bookkeeper or accountant fees — including TaxChill's monthly fee
• Solicitor fees for business-related legal work
• Professional body memberships and trade association fees
• Business insurance premiums

6. Training and development

Training costs are deductible if they're directly related to your existing trade. For example, a plumber attending a course on new heating systems, or a designer learning a new software tool.

You cannot claim for training that would qualify you for a new profession entirely.

Deductible training expenses include:

• Courses and workshops
• Professional development books and resources
• Online learning subscriptions relevant to your trade
• Conference and seminar fees

7. Staff and subcontractor costs

If you use subcontractors or employ people to help with your business, their costs are deductible:

• Wages and salaries
• Employer National Insurance contributions
• Pension contributions you make on their behalf
• Subcontractor fees (keep invoices)

8. Bank charges and finance costs

• Business bank account charges and fees
• Credit card fees on business purchases
• Interest on business loans (not the loan repayment itself)
• Overdraft charges on your business account

9. Insurance

Business insurance premiums are fully deductible, including:

• Public liability insurance
• Professional indemnity insurance
• Business equipment insurance
• Employer's liability insurance (if you have staff)

10. Clothing and uniforms

This is one where sole traders often get it wrong. Regular clothing is not deductible — even if you only wear it for work. HMRC's position is that clothing has a dual purpose (it keeps you warm as well as being workwear).

You can claim for:

• Specialist protective clothing — hard hats, hi-vis vests, safety boots
• Uniforms with a business logo
• Costumes used exclusively for professional performance work

What you cannot claim as a sole trader

To be clear on what's off limits:

• Personal clothing and everyday workwear
• Food and drink (except in limited circumstances such as overnight business trips)
• Client entertainment — HMRC specifically excludes this
• Fines and penalties, including parking fines
• Personal travel and commuting costs
• Any expense with a predominantly personal purpose

How to keep records of your expenses

HMRC requires you to keep records of all business expenses for at least 5 years after the Self Assessment deadline. For each expense you claim, you need:

• A receipt or invoice showing what was purchased
• Evidence it was for business purposes

Digital records are perfectly acceptable — a photo of a receipt on your phone is fine. Under Making Tax Digital, keeping digital records is now a legal requirement for most sole traders.

Sole trader expenses and MTD ITSA

Under Making Tax Digital for Income Tax, you now submit your income and expenses to HMRC quarterly rather than annually. This means getting your expenses right throughout the year — not just at the end — has become even more important.

With TaxChill, we categorise your expenses each quarter as part of our service. We make sure you're claiming everything you're entitled to, nothing you're not, and that your records meet HMRC's requirements.

Frequently asked questions about sole trader expenses

Can I claim expenses before my business started?

Yes — pre-trading expenses incurred in the seven years before your business started can be claimed, provided they would have been allowable if the business had already been trading.

Do I need receipts for every expense?

Strictly speaking, yes. HMRC can request evidence for any expense you claim. Keep digital copies of all receipts and invoices.

Can I claim my broadband if I work from home?

Yes — the business proportion of your broadband bill is claimable. If you use broadband 50% for business and 50% personally, you can claim 50% of the cost.

What's the difference between an expense and a capital allowance?

Day-to-day running costs (stationery, software subscriptions, fuel) are expenses deducted in the year they're incurred. Larger purchases that last several years (laptops, machinery) are capital expenditure — usually claimed through the Annual Investment Allowance in the year of purchase.

Can I claim my car as a sole trader?

You can claim business mileage at the HMRC approved rate (45p/mile for the first 10,000 miles). Alternatively, if your car is used exclusively for business, you may be able to claim actual costs — but for most sole traders, the mileage rate is simpler and more beneficial.

Not sure whether you're claiming everything you're entitled to? Book a free call with us — we'll review your situation and make sure you're not leaving money on the table.