Let’s talk expenses.
If you’re self-employed in the UK (whether that’s as a sole trader, contractor, or freelancer) you already know doing your own taxes can feel like its own full-time job. But one of the quickest ways to reduce your tax bill is by making sure you’re claiming everything you’re entitled to.
Here’s the good news: HMRC lets you claim for a surprising number of everyday business costs, as long as they’re “wholly and exclusively” for your work.
Here’s what that actually means in practice.
Working from home? You’re entitled to claim for that.
If you use part of your home to run your business (even if it’s just the kitchen table), you can claim a portion of your household bills. There are two ways to do this:
Flat rate method – claim a fixed amount based on hours worked at home per month
Actual costs – work out the percentage of bills like electricity, rent, and broadband that relate to your business
Not sure which is better? We can help you work it out.
Office and admin expenses
Things like:
Stationery and postage
Business insurance
Software subscriptions (like Xero, QuickBooks, Canva, etc.)
Phone bills (for your business number or portion of your mobile usage)
Internet (again, a portion if shared with personal use)
If you’ve bought a laptop or printer for work, you can usually claim capital allowances too.
Travel costs
You can’t claim your commute to a regular place of work, but if you’re travelling for client meetings, networking, or supplier visits? That counts.
You can claim:
Mileage (45p per mile for the first 10,000 miles)
Train, bus, taxi fares
Parking fees and tolls
Hotel stays and meals if you’re away overnight
Heads up: You can’t claim for speeding tickets, no matter how “justified” they were 😉
Professional services & memberships
If you pay for a business bank account, accountant (👋), solicitor, or trade association all of that can be deductible. Just make sure it’s directly related to your business.
Training & development
Courses that help you improve your existing skills (not brand-new ones) can be claimed. So, if you’re a graphic designer doing a refresher on Photoshop…yes. If you’re taking a course to become a yoga teacher when you’re a copywriter, not so much.
Quick note on receipts
Yes, HMRC can ask to see proof. Keep your receipts, invoices, and bank statements organised either physically or digitally. There are loads of apps now that make it super easy (and we’re happy to recommend some).
And finally…
If you’re not sure what counts, what’s a grey area, or whether you’re missing out on any claims, get in touch with us. We’ll help you stay compliant, claim what you’re entitled to, and make tax time way less stressful.
Need help with your tax return?
Whether your brand new to self-employment or just want a second pair of eyes on your numbers, Bedford Accountants Ltd is here to help. Give us a ring or drop us a message, no jargon, no pressure.