TaxCalc Blog

Essential business expenses to include on your self assessment tax return

If you’re completing your Self Assessment tax return yourself, one of the most valuable things you can do is make sure you’re claiming all the business expenses you’re entitled to. These legitimate costs can reduce your taxable profit and, therefore, the amount of tax you’ll pay.

But with so many types of expenses to consider, it can be difficult to know what does (and doesn’t) count.

To help you get it right, here’s a practical guide to the key types of expenses you can usually claim when filing your 2024/25 tax return as a sole trader, freelancer or self-employed individual.

1. Office and home-working expenses

Whether you work from a rented office space, co-working hub or your own home, some of your running costs may be allowable. These can include:

• Rent for business premises
• Utilities (electricity, gas, water) relating to your workspace
• Business phone lines or allocated mobile/business broadband usage
• Office furniture and small equipment (e.g. desks, chairs, lamps)
• Stationery and general office supplies

If you work from home, you can either:

• Use HMRC’s simplified flat-rate method, based on hours worked from home, or
• Calculate a proportion of household bills (e.g. rent, rates, utilities) used for business

Remember: If something is used for both business and personal purposes, you can only claim the business portion.

2. Travel and business journey costs

You can claim travel costs as long as they are wholly for business purposes - not including commuting between your home and a regular workplace.

Allowable travel expenses include:

• Business mileage (45p per mile for the first 10,000 miles, then 25p thereafter)
• Train, bus, taxi or tube fares for business journeys
• Parking, tolls and congestion charges
• Overnight accommodation and subsistence for business trips

If you use a car for business journeys, you can either:

• Use HMRC’s mileage rates as stated above, or
• Calculate a proportion of total running costs used for business

Remember: Keep clear records of mileage and travel dates - ordinary commuting is not claimable.

3. Equipment, tools and technology

Many businesses rely on equipment such as tools, machinery, laptops, tablets, phones, cameras and printers. If these are used for business, they are usually claimable.

Items expected to last longer than a year are often claimed using capital allowances (for example under the Annual Investment Allowance), while smaller consumables can typically be claimed as day-to-day expenses.

Remember: If you choose to use the ‘cash accounting’ basis then all your tools and equipment are claimable alongside any other expenses. If you use the ‘accruals’ basis (or invoice date basis) then you will need to consider capital allowances.

File your tax return with TaxCalc from as little as £38. Find out more about it here.

4. Software, subscriptions and digital services

As more businesses operate digitally, HMRC recognises software and subscription costs as eligible expenses. These may include:

• Accounting software (Excel, Xero, FreeAgent)
• Creative, design and editing tools (Adobe, Canva, Final Cut Pro)
• Project management platforms (Trello, Asana, Monday)
• Cloud storage
• Website hosting and domain fees
• Cybersecurity and antivirus subscriptions

Remember: These costs are often overlooked but can add up — especially if you’re using multiple digital tools in your daily work.

5. Professional services and insurance

You can claim costs relating to professional support or necessary protection for your business, such as:

• Your accountant or bookkeeper
• Legal advice for business purposes
• Business bank charges and interest
• Professional indemnity or public liability insurance
• Industry-specific professional memberships

Remember: Legal costs for personal matters (e.g. property transactions or personal disputes) cannot be claimed.

6. Marketing, advertising and client-facing costs

Promoting your services or maintaining your professional image often involves claimable expenses, including:

• Website development, content creation and maintenance
• Online ads (Google Ads, Meta Ads, LinkedIn campaigns)
• Business cards, signage and promotional flyers
• Social media marketing tools
• Photography or video production for business promotion

Remember: Even small advertising or promotional spend counts — don’t forget to include it.

7. Training and professional development

If you take training to maintain or update your existing skills related to your current line of work, these costs are generally allowable.

Example: A freelance photographer upgrading skills in new editing software

Not claimable: Training aimed at entering an entirely new industry

Remember: Training must enhance your existing business activity, rather than start a new one from scratch.

8. Wages, subcontractors and agency fees

If you employ people or use subcontractors, their costs may qualify as allowable business expenses, such as:

• Salaries and wages
• Employer’s National Insurance contributions
• Pension contributions
• Fees paid to subcontractors, freelancers or agency workers

Remember: Use HMRC’s Check Employment Status for Tax (CEST) tool if you are unsure whether somebody should be on the payroll or paid as an independent freelancer.

9. Entertaining, meals and client relationship costs

This is an area where many people get caught out. Business entertainment of clients, suppliers or prospects is not an allowable expense, even if it helps you win work. That includes meals, drinks and hospitality given as a marketing gesture.

However, some related costs are allowable, such as:

• Meals during overnight or qualifying business travel
• Modest refreshments provided at your usual place of work when meeting clients
• Entry fees for trade shows, exhibitions or networking events directly related to your business
• Business-related conferences and seminars

Remember: General client entertaining (like taking someone out for lunch or drinks) is not deductible but business travel meals for yourself are.

10. Other day-to-day running costs

There are many smaller expenses that, when combined, can significantly impact your taxable profit. Examples include:

• Postage and delivery fees
• Business-related phone calls
• Printing and stationery
• Uniforms or protective clothing required for your role
• Small tools, accessories and consumables
• Trade publications and industry journals

Remember: A branded shirt or required safety gear is claimable, everyday “work clothes” are not.

Final thoughts

Knowing what you can legitimately claim helps ensure you don’t overpay tax. By understanding the main categories of allowable business expenses and maintaining organised records, filing your Self Assessment becomes easier and more accurate.

Using reliable Self Assessment software can also help you identify the right expense areas and avoid missing tax-saving opportunities but, if you are ever in doubt, seek the assistance of a qualified accountant or tax adviser.

For a simpler way to file your tax, download TaxCalc’s award-winning tax return software today! Learn more here.

File your tax return with TaxCalc from as little as £38. Find out more about it here.