Complete Guide to Self-Employed Expenses in 2026
Claiming allowable expenses is the simplest way to reduce your tax bill. HMRC states that any business expense must be wholly and exclusively for your business to be claimed.
What expenses are allowable?
You can subtract these costs from your turnover to reduce your taxable profit:
- Office costs: Stationery, phone bills, internet, and postage.
- Travel costs: Fuel, train fares, and parking. Note that commuting to a regular workplace is not allowed.
- Home office: A flat rate or proportion of utility bills if you work from home.
- Stock and raw materials: Goods you buy to sell or materials for manufacturing.
Simplified Expenses
If you do not want to calculate exact costs, HMRC offers flat-rate simplified expenses. For instance, you can claim a flat rate per mile for business vehicle travel (45p per mile for the first 10,000 miles) or a flat monthly rate for working from home based on your hours.
Keeping records
You do not need to send receipts to HMRC when you file, but you must keep them for at least 5 years. Digital copies are perfectly fine under MTD rules, so scanning receipts and storing them securely is highly recommended.
Use our Sole Trader Tax Calculator to estimate your profits after subtracting all your business expenses.