One of the questions we’re asked most often is, “What expenses can my business claim?”
If you want a clear understanding of which expenses are allowable, download our free Expenses Guide now!
Understanding which business expenses you can claim that are allowable can help you reduce your tax bill, improve your cash flow and ensure you’re not paying more tax than necessary.
The general rule is simple: an expense must be wholly and exclusively for business purposes to be tax deductible. If an expense has both business and personal use, you can usually only claim the business proportion.
Common Business Expenses You Can Claim
Here are some of the most common expenses that many businesses can claim:
Office Costs
- Stationery and office supplies
- Printer ink and paper
- Postage
- Software subscriptions
- Telephone and internet costs (business use)
Travel Expenses
- Business mileage
- Train, bus and taxi fares for business journeys
- Parking fees
- Hotels for business trips
(Ordinary commuting between home and a permanent workplace is generally not allowable.)
Professional Services
- Accountant’s fees
- Bookkeeping services
- Legal fees relating to your business
- Business insurance
Marketing and Advertising
- Website costs
- Social media advertising
- Printed marketing materials
- Business cards
- Online advertising
Equipment
You may be able to claim for:
- Computers and laptops
- Mobile phones used for business
- Office furniture
- Tools and equipment required to run your business
Depending on the item, these may be treated as capital allowances rather than day-to-day expenses.
Training
Training that helps you maintain or improve your existing business skills is often allowable. Courses that teach you an entirely new trade may not qualify.
Premises Costs
If you work from business premises, you may be able to claim:
- Rent
- Utilities
- Business rates
- Cleaning costs
If you work from home, you may be able to claim a proportion of your household costs or use HMRC’s simplified expenses method, depending on your circumstances.
Keep Good Records
HMRC requires businesses to keep accurate records of their expenses. This includes:
- Receipts
- Invoices
- Bank statements
- Digital copies of supporting documents
Good record keeping makes preparing your accounts much easier and helps if HMRC ever asks to see evidence of your claims.
Don’t Guess
Many business owners either claim too little because they’re worried about getting it wrong, or claim expenses that aren’t allowable.
If you’re ever unsure, it’s always better to ask before submitting your tax return.
Need Help?
At Green Zebra Ltd, we help sole traders, freelancers and small businesses understand exactly what they can claim, keep accurate records and stay compliant with HMRC requirements.
If you’d like help managing your business finances or making sure you’re claiming everything you’re entitled to, we’d be delighted to help.
