Allowable expenses reduce taxable profit when they meet HMRC's rules for your circumstances. This guide covers common categories, but it is not an exhaustive list or personal tax advice.
Office costs
- Stationery, printing, postage
- Phone and internet (business proportion)
- Software & subscription tools (100% if business-use)
Travel
- Train, bus, taxi, parking, tolls
- Business mileage at 45p/mile for the first 10,000 miles, then 25p
- Accommodation when working away from home
Clothing
- Uniforms with a business logo
- Protective gear required for the job
Regular street clothes — even if you only wear them for work — are not deductible.
Marketing
- Website hosting, domain, design
- Advertising (social ads, print, sponsorships)
- Free samples given to clients
Staff & subcontractors
- Salaries you pay (covered separately via payroll)
- Subcontractor invoices
Premises
- Rent for office space
- Working from home — use HMRC's simplified-expenses flat rate when eligible, or work out the allowable business proportion of actual costs
- Utilities, business insurance, security
Professional fees
- Accountant or bookkeeper fees
- Legal advice for the business
- Training courses directly related to your trade
What's NOT allowable
- Client entertainment
- Fines and penalties
- Personal expenses
- Capital purchases — these go through capital allowances instead
Upload receipts or bank statements to LedgerlyPro, review the suggested categories and keep the original evidence with your records.
