If you’re self-employed in the UK, there’s a high chance you’re paying more tax than necessary! Why? Because so many business owners forget to claim the expenses they’re entitled to. And let’s be honest – HMRC won’t remind you. But I will!
Allowable expenses are costs that are wholly and exclusively for your business. If you spend money to keep your business running, you can deduct these costs from your income before tax is calculated.
🚀 Here are some of the most common self-employed tax deductions:
If you use your car for business, you can claim:
✔ Mileage allowance: 45p per mile for the first 10,000 miles, 25p per mile after that
✔ Parking fees (but NOT fines – HMRC won’t let you off there!)
✔ Public transport fares for business trips
If you work from home even part-time, you can claim a portion of your household bills, including:
✔ Electricity & heating
✔ Internet & phone
✔ Rent or mortgage interest (proportionate to work use)
💡 Quick Tip: If you don’t want to calculate exact costs, HMRC allows a simplified flat rate:
If you use your mobile or broadband for business, you can claim the business portion.
✔ Laptops, printers, and office chairs
✔ Stationery, pens, notebooks
✔ Accounting software like QuickBooks, Xero, or FreeAgent
Did you take a course, webinar, or buy business-related books? If it helps you do your job better, it’s tax-deductible.
✔ Website costs (domain, hosting)
✔ Social media adverts (Facebook, Instagram, Google Ads)
✔ Business cards, flyers, and branding
Here’s a little-known trick: If your business turnover is below £1,000 per tax year, you can claim the Trading Allowance, which means you don’t even have to declare the income to HMRC! (Unless you choose to claim expenses instead).
💡 Golden Rule: Only claim what’s genuinely for business use. HMRC doesn’t like personal expenses disguised as business costs. Claim smartly and correctly to avoid fines and audits!
✅ Keep receipts (digital or paper)
✅ Use accounting software to track expenses
✅ Speak to an accountant if you’re unsure
💬 Final Thought: If you’re not claiming your expenses, you’re literally giving free money to HMRC. Don’t do that. Be savvy, claim smart, and keep more of your hard-earned cash!