What self employed expenses can i claim

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What are Allowable Expenses?

Allowable expenses are simply the costs of running your business. To be ‘allowable’, an expense must be ‘wholly and exclusively’ for business purposes. This means the cost must be entirely for your business and not for personal use. If something is used for both business and personal reasons, you can only claim the business portion of the cost [1].

Let’s look what self employed expenses can i claim:

1. Office Costs

Even if you work from home, you’ll likely have office-related expenses. These can include:

•Stationery: Pens, paper, notebooks, printer ink, etc.

•Phone bills: The business portion of your mobile or landline phone bill.

•Postage: Costs for sending business letters or packages.

2. Travel Costs

If you travel for your business, you can claim certain expenses. This includes:

•Fuel: For business journeys in your own vehicle.

•Parking fees: When parking for business purposes.

•Train, bus, or taxi fares: For business travel.

•Hotel costs: If you need to stay overnight for business.

Important: You generally cannot claim for normal commuting between your home and your usual place of work.

3. Clothing Expenses

This might seem unusual, but you can claim for certain clothing if it’s specifically for your business. This usually means:

•Uniforms: If you have a specific uniform for your job.

•Protective clothing: Such as safety boots or hard hats.

•Costumes: If you’re an entertainer and need specific outfits for performances.

Note: You cannot claim for everyday clothing that you might also wear outside of work.

4. Staff Costs

If you employ other people or use subcontractors, their costs are allowable expenses. This includes:

•Salaries and wages: Paid to your employees.

•Subcontractor costs: Payments to other self-employed individuals you hire for specific tasks.

•Employer National Insurance contributions: If you pay these for your employees.

5. Things You Buy to Sell On

If your business involves selling goods, the cost of buying those goods is a key expense. This covers:

•Stock: Items you buy to resell.

•Raw materials: If you make products, the cost of the materials you use.

6. Financial Costs

Running a business often involves various financial outgoings that you can claim:

•Insurance: Business insurance, such as public liability or professional indemnity insurance.

•Bank charges: Fees for your business bank account.

•Accountant’s fees: Costs for professional advice on your business finances and taxes.

•Interest on business loans: If you’ve borrowed money specifically for your business.

7. Costs of Your Business Premises

If you have a separate business premises, or even if you work from home, you can claim a proportion of certain costs:

•Rent: For your office or workshop.

•Heating and lighting: For your business space.

•Business rates: If applicable to your premises.

•Repairs and maintenance: For your business property.

8. Advertising and Marketing

Getting the word out about your business is crucial, and these costs are usually allowable:

•Website costs: Design, hosting, and maintenance.

•Advertising: In newspapers, online, or through social media.

•Marketing materials: Leaflets, business cards, brochures.

9. Training Courses

Training that helps you improve skills for your current business is an allowable expense. This includes:

•Refresher courses: To keep your skills up-to-date.

•Courses to improve existing skills: That are directly related to your trade.

Note: You generally cannot claim for training that helps you learn a completely new skill or prepare for a new business venture.

References

[1] GOV.UK. Expenses if you’re self-employed: Overview. Available at:
https://www.gov.uk/expenses-if-youre-self-employed

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