Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer Allowable expenses are costs incurred wholly and exclusively for your business, such as stock, tools, travel, a share of home costs, insurance and accountancy fees. You deduct them from your income to work out your taxable profit. If your expenses are tiny, the £1,000 trading allowance may leave you better off.

What you can usually claim

  1. Office and admin. Stationery, software, phone and internet used for the business, and postage.
  2. Travel. Business mileage at HMRC rates, train and bus fares, and parking. Ordinary commuting to a permanent workplace does not count.
  3. Working from home. A fair share of light, heat and broadband, or the simplified flat rate based on the hours you work from home.
  4. Stock and materials. The cost of goods you buy to sell or use in your work.
  5. Professional costs. Accountancy fees, business insurance, and relevant subscriptions.
  6. Equipment. Tools, computers and machinery, usually through capital allowances.

What you cannot claim

  • Client entertaining. Not allowable, however genuinely business related.
  • Ordinary clothing. Only genuine protective wear or a uniform qualifies.
  • Personal costs. Anything with a private element must be split, and the personal part cannot be claimed.
  • Fines. Parking and other penalties are not deductible.

Claiming everything you are entitled to?

Missed expenses mean overpaid tax, and guessed ones invite questions. TaxTune knows exactly what your trade can claim, keeps the records tidy, and makes sure nothing allowable is left on the table.

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Frequently asked questions

What expenses can I claim on Self Assessment?

Costs incurred wholly and exclusively for your business, such as stock, tools, business travel, a share of home running costs, insurance, software and accountancy fees. They reduce your taxable profit.

What is the £1,000 trading allowance?

It lets you earn up to £1,000 of trading income without paying tax or claiming expenses. If your costs are less than £1,000, claiming the allowance instead can leave you better off.

Can I claim for working from home?

Yes. You can claim a fair share of light, heat and broadband, or use the simplified flat rate based on the number of hours you work from home each month.

Can I claim clothing?

Only genuine protective clothing or a branded uniform. Ordinary clothes you could wear day to day are not allowable, even if you only wear them for work.

Is client entertaining allowable?

No. Entertaining clients is not an allowable expense for tax, however closely it relates to winning or keeping business.