Expenses you can usually claim
| Type | Examples |
|---|---|
| Cost of goods | Stock and raw materials you sell or use in what you sell |
| Office and running costs | Phone and internet for work, stationery, software, postage |
| Travel | Fuel, parking, train fares for business journeys (not your commute to a regular workplace) |
| Premises | Rent, business rates, utilities for business premises |
| Staff | Wages, employer’s National Insurance, subcontractors |
| Financial costs | Bank charges, business insurance, interest on business loans |
| Professional fees | Accountant, solicitor and professional subscriptions |
| Marketing | Advertising, website costs |
You cannot claim personal costs, clothing that is not a uniform or protective wear, client entertainment, fines, or the cost of your own meals on a normal working day.
Simplified expenses: flat rates
Instead of working out actual costs, you can use HMRC’s flat rates for some expenses.
| Flat rate | Rate for 2025-26 |
|---|---|
| Car or van, per business mile | 45p for the first 10,000 miles, then 25p |
| Motorcycle, per business mile | 24p |
| Working from home, 25 to 50 hours a month | £10 a month |
| Working from home, 51 to 100 hours a month | £18 a month |
| Working from home, 101 hours or more a month | £26 a month |
Work out the flat-rate amount and include it in the matching expense box, for example mileage in Car, van and travel expenses — after private use (box 12). If you use mileage for a vehicle, do not also claim its actual running costs.
The £1,000 trading allowance
The trading allowance lets you deduct up to £1,000 from your trading income instead of claiming expenses. If your total trading income is £1,000 or less, you may not need to report it at all.
It is usually better when your actual expenses are less than £1,000. If they are more, claim the expenses instead. The allowance cannot create a loss.
- Short pages: box 10.1 Trading income allowance. Full pages: box 16.1.
- If you claim it, leave the expense boxes empty. Otherwise you see Use the allowance or your expenses, not both.
- It cannot be more than £1,000, or more than your income: Trading income allowance cannot be more than £1,000.
Entering expenses on the short pages
On the SA103S, enter expenses by type in boxes 11 to 19, such as Car, van and travel expenses — after private use (box 12). If your turnover was below £90,000 you can put the total in box 20 instead. You still need records that show the detail.
Still stuck?
- Not sure if a cost is allowable? Ask: was it only for the business? If partly private, claim the business share.
- Bought a laptop or van? It usually goes in capital allowances rather than expenses.
- Using mileage rates? Remove fuel and repairs for that vehicle from your expenses.
Still not sorted? Contact us and tell us the page, the tax year and any message you see.
Questions answered
What expenses can I claim if I am self-employed?
Costs you pay wholly and exclusively to run the business, such as stock, business travel, phone and internet for work, insurance, premises costs, staff and accountancy fees.
Can I claim the trading allowance and expenses?
No. You claim either the £1,000 trading allowance or your actual allowable expenses.
What is the mileage rate for 2025-26?
45p a mile for the first 10,000 business miles in a car or van, then 25p a mile. Motorcycles are 24p a mile.
Can I claim for working from home?
Yes. Use HMRC’s flat rate based on the hours you work at home each month, or claim a fair share of household bills.
Do I need to keep receipts?
Yes. You do not send them with your return, but you must keep records for at least 5 years after the 31 January filing deadline.
Official sources
- GOV.UK: Expenses if you’re self-employed
- GOV.UK: Simplified expenses
- GOV.UK: Tax-free allowances on property and trading income
These guides explain how HMRC's rules apply in Self Assessment Software. Check GOV.UK for your own circumstances.