Self-employed allowable expenses

You can claim costs that are for your business: stock, travel, office costs, staff, premises, marketing and professional fees. Your own drawings, everyday clothing and entertaining clients don’t count, and anything you also use privately is claimed only for its business part.

Checked against GOV.UK by Cristiano Betta of Work Betta Ltd, which makes Tillslip, on 25 October 2026: Expenses if you’re self-employed, SA103S, 2025–26, SA103F, 2025–26, Simplified expenses: working from home.

Short form or full form?

The short form, SA103S, is for turnover under £90,000 (or what would have been under £90,000 over a full year) when nothing else applies. You need the full form, SA103F, if turnover was £90,000 or more, your accounts don’t end between 31 March and 5 April, or you have other adjustments to make; HMRC’s SA103 notes list every case. Under £90,000 you can give just your total expenses, in box 20 on the short form or box 31 on the full one, instead of the breakdown.

Working from home

Either claim the business part of your actual costs, such as heating, electricity and Council Tax, divided in a reasonable way, or use HMRC’s flat rate by the hours you work from home each month: £10 for 25 to 50 hours, £18 for 51 to 100, and £26 for 101 or more. The flat rate doesn’t cover phone or internet, so claim the business part of those separately.

The £6 a week is for employees, not the self-employed, and employees can’t claim it from 6 April 2026.

Equipment you keep

With cash basis, the default since 6 April 2024, claim things like a computer or tools as expenses. Cars are the main exception: claim those through capital allowances, unless you use the flat rate per mile. A few other things, such as land, can’t be claimed as expenses either. With traditional accounting, claim equipment through capital allowances, usually the Annual Investment Allowance, not as expenses.

Driving for work

Claim the business part of running your car or van, or use HMRC’s flat rate per mile instead, but not both for the same vehicle. You can’t switch to the flat rate for a vehicle you’ve claimed capital allowances on or put through as an expense, and once you use it for a vehicle you keep using it. It can’t be used for cars designed for commercial use, such as black cabs, but vans and other goods vehicles are covered. The rate depends on the tax year of the trip.

HMRC mileage rates, by tax year

Clothing

You can claim uniforms, protective clothing such as safety boots, and costumes for performing. Everyday clothing doesn’t count, even if you only wear it for work.

What you can’t claim

Your own drawings or wages, your National Insurance, entertaining clients, fines, and travel between home and your usual place of work. Your accountant’s fees for your business accounts count, but the cost of preparing your personal tax return doesn’t.

The £1,000 trading allowance

Up to £1,000 of trading income a year can be tax-free, one allowance shared across all your trades and casual income. If you use it, you can’t claim any expenses or capital allowances against that income, so it only helps when your costs are under £1,000. You can’t use it at all in a tax year when any of your trading income comes from your or your spouse’s or civil partner’s employer, or from a company or partnership you or someone connected to you owns or is part of.

Also: Landlord expenses · Mileage calculator · Mileage rates · SA105 box by box · Keeping receipts · Landlord expenses spreadsheet