Answers · UK 2025/26
What expenses can I claim as a UK sole trader?
You can claim "wholly and exclusively" business expenses: office supplies, travel (not commuting), use-of-home (£6/week simplified or actual %), professional fees, marketing, business insurance, business phone/internet portion, accounting and capital allowances on equipment.
Full answer
UK sole trader allowable expenses 2025/26. "Wholly and exclusively for business" test. Common deductions. Office costs: stationery, postage, business software subscriptions, web hosting. Travel: business mileage (45p/mile first 10,000 miles in own car, 25p after; 24p motorbike, 20p bicycle), train/bus/plane tickets for business, parking, congestion charge. Excludes ordinary commuting. Use-of-home: simplified £6/week (£312/year) — no records needed; or actual proportion (rooms used × % business × bills × time). Phone/internet: business proportion only. Professional fees: accountants, solicitors, trade body subscriptions, work-related insurance. Marketing: website, advertising, design, business cards, networking event tickets. Capital allowances: 100% Annual Investment Allowance (AIA) on up to £1m of plant/machinery purchases (laptops, desks, tools); cars have separate rules. Bad debts: writeable off after reasonable attempt to collect. Trading allowance: £1,000 flat alternative to expenses if income is low. Excludes: entertaining clients (NEVER deductible — different from staff entertainment), most fines and penalties, personal items. Records: keep for 5 years from 31 January deadline. Best practice: separate business bank account, monthly bookkeeping software (FreeAgent, QuickBooks).
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.