Indietax

Allowable Self-Employed Expenses 2026/27

Updated for the 2026/27tax year · Last updated

Use this reference guide to check whether a business expense is deductible against your self-employment profits. Search by keyword or browse by category — green checkmark means allowable, red cross means not deductible as a business expense.

Reference guide for common self-employed business expenses. The “allowed” status assumes the expense is incurred wholly and exclusively for business purposes.

Office & equipment

Computer, laptop, tabletBusiness use proportion only
Software subscriptionsMust be wholly for business
Office furnitureBusiness use proportion if at home
Stationery & postageFully deductible
Personal clothingNot deductible unless a specialist uniform

Travel & vehicles

HMRC mileage allowance (45p/25p)For cars using AMAP rates
Train, bus, taxi faresBusiness journeys only
Hotel & accommodationBusiness trips only
Commuting to regular workplaceTravel to a permanent workplace is not deductible
Subsistence (meals on business trips)Reasonable amounts while away from base

Home working

HMRC flat rate (£10–£26/month)Simplified expenses for self-employed
Actual costs (heat, light, broadband)Business-use proportion only
Mortgage interest / rentNot deductible for sole traders (use of home method instead)

Professional & finance

Accountancy & bookkeeping feesFully deductible
Professional subscriptionsMust be on HMRC approved list
Professional indemnity insuranceBusiness insurance is deductible
Bank charges (business account)Business account fees only
Personal income taxNot a business expense

Marketing & training

Advertising & marketingWholly for business promotion
Website costs & hostingFully deductible
Training to improve existing skillsMust relate to current trade
Training to start a new tradePre-trading costs are capital, not revenue
Business entertainingEntertaining clients is specifically disallowed

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How this calculator works

An expense is deductible if it’s incurred wholly and exclusively for business purposes. For expenses with mixed business/personal use, only the business proportion may be claimed. HMRC has specific rules for certain categories (travel, home working, entertainment) that override the general principle.

Frequently asked questions

HMRC allows business expenses that are incurred 'wholly and exclusively' for the purposes of the trade. If an expense has a dual purpose — business and personal — you can only claim the business-use proportion, or in some cases none at all if the personal use is the primary purpose.
Yes. You can use HMRC's simplified flat-rate allowance (£10–£26/month depending on hours) or claim actual costs on a proportional basis (rooms used × hours used × running costs). Use the Working from Home Calculator or Use of Home as Office Calculator for exact figures.
For sole traders, you can either claim the HMRC mileage rate (45p/25p per mile for cars) or claim actual running costs on a business-use proportion. You cannot claim both methods for the same vehicle. If you use the mileage rate, you cannot also claim depreciation or finance costs.
No. HMRC specifically disallows entertaining clients, customers, or suppliers as a business expense. Staff entertainment (e.g. a Christmas party up to £150/head) has different rules and may qualify for exemption from benefit-in-kind rules, but it's still not deductible against Corporation Tax or self-employment profits.

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