Free guides made for real businesses like yours.
As a sole trader, every pound counts — especially at tax time. Claiming the right deductions not only reduces your tax bill, it puts more money back into your business. Here's what you should be tracking and claiming to stay tax-efficient and compliant in the UK.
HMRC allows sole traders to claim back a wide range of everyday business costs. The key is understanding what qualifies—and keeping good records to back it up. Here are some of the top deductions you should be tracking:
If you work from home, you can claim a portion of your rent, household costs — including electricity, internet, rent, council tax, and mortgage interest — based on the area used for business. HMRC offers simplified or actual cost methods.
Whether you rent a studio, use a shared co-working space, or work from home, you can claim back part of your rent, utility bills, and internet as business expenses. HMRC provides simplified flat rates for home use, or you can calculate actual usage.
If you use your personal vehicle for business—whether to meet clients, deliver goods, or run errands—you can deduct mileage or actual expenses (fuel, insurance, maintenance). Public transport and parking fees also count when they’re business-related.
Anything essential for your business — such as laptops, cameras, tools, or industry-specific software — is eligible for full or partial deductions. You may need to claim these as capital allowances if they’re expected to last multiple years.
Expenses like accountant fees, solicitor, designer, business-related courses, certifications, and trade association memberships are fully deductible. Even subscriptions to trade publications or online tools like Canva or Adobe Suite can count. Keeping your skills sharp? That’s tax deductible too — if the training relates to your current work.
From social media ads and printing flyers to building a website or hiring a branding expert — if it's promoting your business, it's claimable. Just keep receipts and evidence of the business purpose.
Courses, workshops, seminars—even some coaching—can be claimed if they improve your skills for your existing business. Upskilling is an investment, and HMRC recognises that.
You don’t need to be a tax expert to stay on top of your deductions — you just need clarity and a little support. By understanding what you can claim, you’ll be better equipped to make smart decisions, save money, and grow with confidence.
💡 Missing out on deductions? Our Tax Services are built for sole traders—so you claim what you’re entitled to and stop leaving money on the table.
You can claim business-related expenses like home office costs, travel, equipment, marketing, training, and professional fees. The key is that the cost must be incurred “wholly and exclusively” for business use.
Yes — HMRC allows sole traders to claim a proportion of home expenses like rent, electricity, internet, and council tax. You can use a simplified flat rate or calculate based on actual usage.
Day-to-day business costs are claimed as expenses, but long-term items like laptops or tools may qualify as capital allowances. This lets you deduct their value over time instead of all at once.
Absolutely. HMRC expects accurate records — digital or paper — for everything you claim. Without receipts or clear documentation, deductions may be disallowed if investigated.
Schedule a free call with our team today. We’ll walk you through every deduction you're eligible for and help you file with confidence.