What Can a Tradesperson Claim as Expenses? The UK Self-Employed Guide

↑ Part of the Tax & VAT series · The UK Trade's VAT & CIS Guide

As a self-employed tradesperson you can claim any cost that is wholly and exclusively for the business against your profit before you pay tax on it. That covers materials, tools, van running costs, workwear with a logo, insurance, your phone, and a slice of working from the house. Claiming everything you're entitled to does two jobs: it lowers your tax bill, and it shows you what a day of your work actually costs to put on the road, which is the number that belongs in your prices.

This page sits under our main VAT & CIS guide. It's about the costs you set against income tax as a sole trader, and it pairs with Making Tax Digital, which is what you now use to record them.

Part 1The one rule: wholly and exclusively

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HMRC lets you deduct a cost from your profit if it was incurred wholly and exclusively for the business. Get that phrase and you can work out most claims yourself. A drill you only use on jobs is fully allowable. A phone you use for work and for family is claimed on the business share, not the whole bill.

The point of claiming is not to "get money back" as such. It reduces the profit you're taxed on. If you're a basic-rate taxpayer, every £100 of genuine cost you claim saves you 20% in income tax on that profit, plus Class 4 National Insurance on top. Miss the claim and you pay tax on money you already spent to earn.

Part 2What you can claim

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For a working trade, the everyday list is longer than most people think:

• Materials and stock bought for jobs, and the cost of hiring plant or tools for a specific job.
• Tools and equipment you buy to keep, from hand tools to a mixer or a laser level (larger items are handled as capital allowances, below).
• Van and travel to jobs, to the merchants, to a customer's site. Not your commute to a fixed base, but genuine business journeys.
• Workwear that is protective (boots, gloves, hi-vis, hard hat) or a branded uniform. Not ordinary clothes.
• Insurance such as public liability, tools cover and van insurance.
• Phone, internet and software, on the business-use share, including any quoting or accounts subscription.
• Use of your home as an office for quoting, ordering and paperwork.
• Fees for your accountant, business bank account, and interest on a business loan or finance.
• Training that updates a skill you already use, and renewing a trade card or certification.
• Advertising and a website.

Part 3The van: two ways to claim, and you pick one

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The van is usually the biggest travel cost, and there are two methods. You choose one per vehicle and stick with it for as long as you have that vehicle.

Simplified mileage. You claim a flat rate per business mile and forget the actual bills: 55p a mile for the first 10,000 business miles in the year, then 25p a mile after that. The 55p rate went up from 45p on 6 April 2026, the first rise in 15 years, so older guides and calculators still showing 45p are out of date. Keep a simple log of business journeys. This method suits most sole traders because there's almost nothing to work out.

Actual costs. You total the real running costs (fuel, insurance, road tax, repairs, servicing) and claim the business-use proportion, plus a capital allowance for the van itself. More paperwork, but it can beat mileage on a thirsty van doing high miles.

You can't run both on the same van, and you can't switch to actual costs later on a vehicle you started claiming by mileage. Pick the one that fits how you work.

Part 4Tools and bigger kit: capital allowances

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Small tools you buy and use up are a straight expense. Bigger items you keep and use across many jobs (a van bought outright, a welfare unit, a serious piece of machinery) are capital items, and you claim them through the Annual Investment Allowance. The AIA lets you deduct the full cost of qualifying equipment in the year you buy it, up to £1,000,000 a year, which is far more than any solo trade will ever spend. In practice that means most kit is deductible in full, in the year you buy it.

Part 5What you can't claim

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The exclusions catch people out more than the inclusions:

• Ordinary clothes. Jeans and a plain t-shirt aren't allowable even if you only wear them for work. Protective gear and branded uniform are.
• Everyday food and drink. Your normal lunch isn't claimable. A reasonable meal on a genuine overnight or long trip away from your usual area can be.
• Fines. A parking ticket or a speeding fine is never allowable, even if you got it on a job.
• Your own wages or drawings. Money you take out for yourself isn't a business cost. It comes out of profit that's already been taxed.
• Entertaining customers or contacts.
• The full cost of anything used privately too. Split it and claim only the business share.

Part 6Simplified expenses and the £1,000 trading allowance

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Two shortcuts are worth knowing. Simplified expenses let you use flat rates instead of working out real figures, most usefully for use of home: £10 a month if you work from home 25 to 50 hours, £18 a month for 51 to 100 hours, and £26 a month above that. You can mix the flat home rate with actual claims for everything else.

The trading allowance lets you earn up to £1,000 a year from self-employment tax-free without registering or claiming expenses at all. It's aimed at the side earner, not a full-time trade. If your costs are more than £1,000, ignore the allowance and claim your real expenses instead, because that will save you more.

Don't confuse the tax-free allowance with the reporting threshold, which is a separate thing. The government plans to raise the point at which trading income has to be reported on a Self Assessment return from £1,000 to £3,000 a year, at some stage in this Parliament. That decides whether you file a return, not what tax you owe: it lifts the smallest side incomes out of the paperwork, the £1,000 tax-free allowance is unchanged, and anyone earning above it still pays what's due through a simpler online service. For a full-time trade it changes nothing.

Part 7Keep the records, because you'll need them

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Claiming is only as safe as your evidence. Keep receipts and invoices, a mileage log, and a record of anything split between business and private use. You must keep these for at least 5 years after the January filing deadline for that tax year, in case HMRC asks.

This matters more now that Making Tax Digital is live. Sole traders over the income thresholds keep digital records and send HMRC quarterly updates through compatible software, so a shoebox of paper receipts no longer cuts it. Recording costs as you go, rather than reconstructing them the night before the deadline, is the difference between claiming everything and claiming what you can remember.

Common questionsSelf-employed expenses FAQ

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Can I claim my van?

Yes. Either claim 55p a mile for the first 10,000 business miles and 25p after (the 55p rate rose from 45p on 6 April 2026), or claim the actual running costs plus a capital allowance for the van. Pick one method per vehicle and keep to it. You can't claim both on the same van.

Can I claim for my work clothes?

Protective clothing (boots, gloves, hi-vis, hard hat) and a branded uniform are allowable. Ordinary clothes you happen to wear for work are not, even if you'd never wear them anywhere else.

Can I claim lunch when I'm working away?

Your normal daily lunch isn't allowable. A reasonable meal on a genuine business trip away from your usual working area, especially an overnight, can be. Everyday food near your regular patch can't.

What is the £1,000 trading allowance?

It lets you earn up to £1,000 a year from self-employment without paying tax or claiming expenses. It suits a small side income. If your real costs top £1,000, don't use it, claim your actual expenses, which will lower your tax more.

Do I need a receipt for everything?

Keep evidence for what you claim: receipts, invoices and a mileage log. Keep them for at least 5 years after that year's filing deadline. Under Making Tax Digital, those records now need to be digital.

Can I claim tools I bought before I started trading?

Often yes. Kit you already owned and then brought into the business can usually be claimed at its value when you started. Keep a note of what it was and a fair figure for it.

This guide is general information for UK tradespeople, current to the best of our knowledge in 2026. Rules, rates and thresholds change, and how they apply depends on your specific circumstances. It is not tax, accounting or legal advice. Always confirm your position with HMRC, a qualified accountant or a solicitor before relying on it. TradeDraft accepts no liability for decisions made on the basis of this guide. Questions: hello@tradedraft.co.uk.

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