Allowable Expenses
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What expenses can UK sole traders claim?
UK sole traders can usually claim expenses that are 'wholly and exclusively' for business purposes. This means the cost must relate to running the business.
Examples may include stock, tools, software, advertising, insurance, phone costs, travel, training, and professional fees. If something is used partly for business and partly personally, only the business part can be claimed.
The key is to use a reasonable method and keep evidence. Receipts, invoices, mileage logs, and calculations can help support your claim if HMRC asks questions.
Common misconception
Not true.
Paying for something while running a business does not automatically make it an allowable expense.
Check whether the cost is wholly and exclusively for the business before claiming it.
You can only claim the business part of an expense, and you should keep evidence.
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