Guide
Allowable expenses
Allowable expenses are business costs you can take off your income before tax is worked out. They must be wholly and exclusively for your business.
Step by step
- 1Keep receipts and records for every cost
- 2Separate business and personal use
- 3Decide: actual expenses or the £1,000 trading allowance
- 4Consider simplified expenses for home and vehicle
- 5Total expenses by category on your return
Common mistakes
- Claiming everyday clothing
- Claiming your normal commute
- Claiming the trading allowance and expenses together
- Not apportioning mixed-use costs
Related guides
Last checked against GOV.UK: 28 October 2026. Tax year 2026/27.
Not affiliated with HMRC. General information, not professional tax advice. Check GOV.UK or speak to a qualified adviser for your situation.