If you’re self-employed in the UK, understanding what you can claim as business expenses can make a big difference to your final tax bill. In this complete guide, we’ll be answering the important question of ‘what expenses can I claim as self-employed?’, providing real-world examples, offering expert advice to avoid common mistakes when preparing for and submitting your self-assessment tax return, and explaining how we can make the process easier for you.
Table of Contents
What are Tax-Deductible Expenses UK
What Expenses Can I Claim as Self-Employed? (With Examples)
Claiming Expenses When You Work From Home
FAQs
Expert Tips for Claiming “Allowable Expenses”
How to Submit Self-Employed Expenses with Ease
Let Swift Refunds Do The Leg-Work!
What Are Tax-Deductible Expenses UK?
Tax-deductible expenses (also known as allowable expenses) are essential costs that keep your business running. HMRC allows self-employed workers to deduct these costs from their income before calculating their taxable profit, meaning you could pay less tax.
According to HMRC’s guidelines, tax-deductible expenses must be wholly and exclusively for your business. Personal expenses aren’t allowed, but if a cost is split between business and personal use (like a mobile phone bill), you can claim the business portion.
Expert Tip: Keep detailed records and receipts throughout the year, as this can make claiming deductions far easier and safer in case of an HMRC review.
What Expenses Can I Claim as Self-Employed? (With Examples)
When it comes to what expenses you can claim as self-employed, there are many categories to consider. Here’s a detailed breakdown:
|
Category |
Example Expenses |
Notes |
|
Office Costs |
Stationery, printing, postage |
Home office supplies are included here. |
|
Travel Costs |
Fuel, train fares, parking, and hotel stays |
Excludes normal commuting. Business journeys only. |
|
Vehicle Costs |
Insurance, repairs, and servicing |
You can use either actual costs or simplified mileage rates. |
|
Clothing Costs |
Uniforms, protective clothing |
Every day clothes, even if worn for work, aren’t allowable. |
|
Staff Costs |
Salaries, subcontractors, freelance help |
Also includes the employer’s National Insurance. |
|
Marketing Costs |
Website fees, advertising, and social media marketing |
Business-related promotions only. |
|
Training Costs |
Business-related training courses |
Must relate directly to your current business. |
|
Professional Fees |
Accountant fees, legal advice |
Claim if wholly for business purposes. |
Claiming Expenses When You Work From Home
If you’re a self-employed worker who works from home, you can claim a portion of your household costs as tax-deductible expenses. These could include:
- • Heating
- • Electricity
- • Council Tax
- • Mortgage interest or rent
- • Internet and phone bills
There are two main methods:
- 1. Simplified Expenses: HMRC’s flat rate, based on hours worked from home per month.
- 2. Actual Costs: Calculate the exact portion of your bills that relates to business use.
FAQs
What are the most common tax-deductible expenses for self-employed workers in the UK?
Common allowable expenses include travel costs, office supplies, marketing, staff wages, insurance, and costs of working from home. However, you can claim anything that is wholly and exclusively for business use.
Can I claim for using my personal vehicle for business trips?
Yes! You can either claim actual costs (like insurance and repairs) proportioned for business use, or use HMRC’s simplified mileage rates. Remember: commuting to your regular workplace doesn’t count as a business journey.
How much can I claim if I work from home?
If you work from home, you can claim either a flat rate through HMRC’s simplified expenses scheme or a calculated portion of your actual home running costs (like rent, heating, and internet).
What happens if I claim too much in expenses?
If you over-claim or include non-allowable expenses, HMRC may issue fines or request repayments with interest. That’s why it’s essential to keep accurate records or work with a trusted tax refund service like ours!
Can I still claim expenses from previous tax years?
Yes! You can backdate and claim tax-deductible expenses for up to four years prior. Swift Refunds specialises in helping self-employed workers claim back what they’re owed, even if you’ve missed expenses in previous years.
Expert Tips for Claiming “Allowable Expenses”
💡 Keep a business bank account: It’s much easier to track business-only expenses this way.
💡 Use accounting software: Apps like QuickBooks, Xero, or FreeAgent (or even a simple spreadsheet) can help keep your expenses organised.
💡 Log mileage immediately: If you drive for work, log business miles as you go. Don’t rely on memory!
💡 Beware of mixed-use items: Always separate personal and business use clearly. If you’re unsure, it’s safer to under-claim than over-claim.
💡 File early: Filing your self-assessment tax return early can avoid last-minute mistakes and stress when the January deadline looms.
How to Submit Self-Employed Expenses with Ease
When it’s time to submit your self-assessment tax return, getting your expenses right is crucial, as it can directly impact how much tax you pay (or get back). Here’s a quick step-by-step guide:
How to Submit a Self-Assessment Tax Return
- 1. Register with HMRC
If this is your first self-assessment, you need to register via HMRC’s website. - 2. Gather your records
Collect your invoices, receipts, bank statements, mileage logs, and any other records of income and expenses. - 3. Log in to your HMRC account
Once registered, log in to your personal HMRC account using your Government Gateway ID. - 4. Fill in the return
Enter details about your income, expenses, and other financial information. You’ll be asked to either:
– Enter total expenses in one figure (quick and easy), or
– Break down your expenses into categories (recommended for accuracy). - 5. Double-check everything
Mistakes can lead to fines or missed refunds. Cross-reference with your records to ensure you’ve claimed everything you’re entitled to. - 6. Submit and pay your tax bill
Submit your return online by the 31st of January following the end of the tax year. You’ll also need to pay any tax owed by this deadline.
Need a hand with submitting your self-assessment tax return? We’ll review your records, maximise your refund, submit your tax assessment accurately, and deal directly with the HMRC on your behalf, saving you time, stress, and ensuring you don’t leave money on the table!
Let Swift Refunds Do The Leg-Work!
Self-employed tax returns can feel complicated and time-consuming, especially when it comes to maximising your allowable expenses while staying compliant.
That’s where Swift Refunds comes in. When you submit a self-assessment tax return with us, you can rest assured that:
✔ We review your previous years’ tax returns, spotting unclaimed expenses.
✔ We maximise your tax rebate quickly and efficiently.
✔ We liaise with HMRC on your behalf.
✔ We help you avoid costly mistakes or penalties.
Ready to get started? Get in touch with one of our experts today to claim back what you’re owed.
