What Expenses Can a Sole Trader Claim? The Complete 2026 Guide

What Are Allowable Expenses for a Sole Trader?

As a sole trader or freelancer in the UK, you can deduct allowable business expenses from your income before calculating the tax you owe. This reduces your taxable profit and means you pay less tax.

HMRC allows expenses that are "wholly and exclusively" incurred for business purposes.

The Full List of Allowable Expenses

1. Office Costs

• Stationery and printer ink
• Postage and packaging
• Office furniture (desk, chair, shelving)
• Business phone and internet (business proportion)

2. Travel and Mileage

• Mileage at 45p per mile (first 10,000 miles)
• Train, bus, taxi fares for business journeys
• Parking fees for business visits
• Congestion charge for business journeys
• Hotel accommodation for overnight business trips

3. Stock and Materials

• Materials you buy to complete a job
• Stock you purchase to resell
• Packaging for goods you sell

4. Marketing and Advertising

• Website design and hosting
• Social media advertising (Meta, Google Ads)
• Business cards, leaflets, brochures
• PR and press coverage costs

5. Software and Subscriptions

• Accounting software (including Pivitax)
• Project management tools
• Adobe Creative Cloud, Microsoft 365
• Cloud storage subscriptions

6. Professional Services

• Accountant fees
• Legal fees related to your business
• Business insurance premiums
• Professional membership fees

7. Clothing

• Uniforms with a company logo
• Protective clothing (hard hats, hi-vis, safety boots)
• Costumes for performers

You cannot claim everyday clothing, even if you only wear it for work.

8. Staff Costs

• Wages and salaries if you employ staff
• Subcontractor costs
• Pension contributions for employees

9. Financial Costs

• Bank charges and transaction fees on a business account
• Interest on a business loan

10. Use of Home as Office

If you work from home, you can claim a proportion of:

• Heating and electricity
• Broadband
• Rent (if renting — this may have capital gains implications if you own)

HMRC allows a simplified flat rate:

• 25–50 hours working from home per month: £10/month
• 51–100 hours: £18/month
• 101+ hours: £26/month

What You Cannot Claim

• Personal food and drink (unless travelling overnight for business)
• Clothing that is not a uniform or protective wear
• Fines and penalties
• Entertaining clients (HMRC disallows this for sole traders)
• Personal use portion of any mixed-use expense

How to Track Allowable Expenses

The easiest way is to upload every receipt to Pivitax as you go. Our AI reads each document and categorises it into the correct expense type automatically — so when tax time comes, your allowable expenses are already organised and totalled.

Summary

Sole traders can claim a wide range of expenses — from mileage and software to professional fees and office costs. The key rule is that the expense must be wholly and exclusively for business. Keep every receipt and log every journey throughout the year.