What can I claim as self-employed? The 2026/27 list

An expense is allowable if it is incurred "wholly and exclusively" for the business. Mixed-use costs can be split. Here is what that means in practice, box by box on the SA103 form.

Yes, you can claim

• Cost of goods and materials you sell or use in the work (SA103 box 17).
• Car and van costs — either the simplified mileage rate (45p per mile for the first 10,000 business miles, 25p after; 24p motorcycle) or the business share of actual costs (fuel, insurance, repairs, capital allowances). Pick one method per vehicle and stick with it. Commuting to a fixed place of work is not business mileage.
• Working from home — either the flat rate (£10/month for 25–50 hours, £18 for 51–100, £26 for 101+) or a proportion of rent/mortgage interest, council tax, utilities and broadband based on rooms and hours.
• Phone and internet — the business proportion of the bill, or the whole bill for a dedicated business line.
• Software, subscriptions, stationery, postage and small equipment (under the annual investment allowance, most equipment is written off in full in the year you buy it).
• Professional fees — accountant, bookkeeper, solicitor for business matters, trade body subscriptions on HMRC's approved list.
• Insurance — public liability, professional indemnity, business contents, the business share of vehicle insurance.
• Bank charges and interest on a business account or business loan.
• Advertising and marketing — website, ads, business cards, samples given away.
• Training that updates or maintains existing skills. (New skills for a new line of work are not allowable.)
• Staff and subcontractors — wages, employer NI, pension contributions, CIS subcontractor payments.
• Protective clothing and uniforms with a logo — but not ordinary clothes you could wear outside work.
• Pre-trading expenses from up to 7 years before you started, claimed as if spent on day one.
• Bad debts you have written off (accruals basis) and the business share of trade-related travel, hotels and meals when away overnight.

No, you cannot claim

• Entertaining clients (even though it feels like marketing).
• Your own salary, drawings, Class 4 NI or income tax.
• Fines and penalties, including parking fines.
• Ordinary clothing, glasses, gym membership, most medical costs.
• Commuting between home and a regular place of work.
• Personal share of anything mixed-use — split it honestly and keep a note of how.

The £1,000 trading allowance instead

If your expenses are under £1,000 you can ignore them and deduct a flat £1,000 from turnover instead. Handy for side-hustles; not for anyone with a van.

Cash basis is now the default

Since April 2024 sole traders use the cash basis unless they opt out: you record money when it comes in and goes out, which makes the bookkeeping simpler and interest fully deductible.

See the effect on your bill with the sole trader tax calculator.

Rates and thresholds for 2026/27, checked against GOV.UK on 20 September 2026. England, Wales and Northern Ireland. Not tax advice.