Quick Summary
- You can claim costs incurred wholly and exclusively for your business.
- Where a cost is partly personal, claim only the business share.
- Simplified expenses give flat rates for mileage (45p/25p) and working from home (£10–£26 a month).
- Equipment usually gets 100% relief through the Annual Investment Allowance.
- Client entertaining, fines and everyday clothing are not allowable.
Every legitimate expense you claim reduces your profit, and with it your income tax and National Insurance. Yet many sole traders in Glasgow miss expenses they're entitled to — or claim things that aren't allowed. Here's the full list.
The basic rule
An expense is allowable if it's incurred wholly and exclusively for your business. If something is used for both business and personal purposes — like your phone or car — you can claim the business proportion, as long as you can show how you worked it out.
Allowable expenses by category
| Category | Examples |
|---|---|
| Office and admin | Stationery, printing, postage, software subscriptions, business share of phone and broadband |
| Travel | Fuel, repairs, insurance (business share), train and bus fares, parking, hotels for business trips |
| Stock and materials | Goods for resale, raw materials, parts used on jobs |
| Premises | Rent, business rates, utilities, cleaning and repairs for business premises |
| Staff | Wages, employer National Insurance, pension contributions, subcontractor costs |
| Financial | Bank charges, card and payment fees, interest on business loans, insurance |
| Professional | Accountancy and legal fees, trade memberships, professional subscriptions |
| Marketing | Website, advertising, social media ads, business cards, listings |
| Clothing | Uniforms, protective clothing, branded workwear only |
| Training | Courses that update skills you already use in your business |
Equipment and capital allowances
Tools, computers, machinery and vans are usually claimed through capital allowances. The Annual Investment Allowance gives 100% relief in the year you buy them, up to £1 million — enough for almost every small business. Cars work differently and usually get a lower rate of relief based on their CO2 emissions.
Simplified expenses
Instead of working out actual costs, sole traders can use flat rates:
- Vehicles: 45p a mile for the first 10,000 business miles in a car or van, 25p after; 24p a mile for motorcycles. You can't also claim fuel, insurance or capital allowances for that vehicle.
- Working from home (25 or more hours a month): £10 a month for 25–50 hours, £18 for 51–100 hours, £26 for 101 hours or more.
- Living at your business premises, such as a B&B: a flat deduction for private use based on the number of people living there.
What you can't claim
- Entertaining clients or customers
- Fines and penalties, including parking tickets
- Everyday clothing, even if you only wear it for work
- Your normal commute to a permanent workplace
- Lunch on a normal working day
- Personal costs, or the private share of mixed costs
- Repayments of loan capital (only the interest is allowable)
Keeping records
Keep receipts, invoices and bank statements for at least 5 years after the 31 January filing deadline. Photographing receipts as you go is enough. Once your turnover is over £50,000 (falling to £30,000 from April 2027), you'll need Making Tax Digital software. See also how detailed records reduce your tax bill.
Frequently Asked Questions
What expenses can I claim as self-employed?
Costs incurred wholly and exclusively for your business, including stock, travel, office costs, phone and internet (business share), insurance, professional fees, marketing, training, staff costs and equipment.
Can I claim my phone bill as self-employed?
Yes, the business proportion. If you use your phone half for business, you can claim half the bill.
What is the simplified expenses mileage rate?
45p a mile for the first 10,000 business miles in a car or van and 25p after that, or 24p a mile for motorcycles.
Can I claim clothes as a business expense?
Only uniforms, protective clothing or branded workwear. Everyday clothing isn't allowable, even if you wear it only for work.
Can sole traders claim client entertaining?
No. Entertaining clients or customers is not an allowable expense for tax, although staff entertaining can be.
Make Sure You Claim Everything
We review your costs, claim every allowable expense and capital allowance, and file your tax return on time.
Sardar Muhammad, AAT
Sardar is the founder of LimeTree Accounting Solutions, an AAT-accredited practice in Govanhill, Glasgow. He works with sole traders, tradespeople, landlords and small limited companies across Glasgow and Clydebank.
This guide is general information based on UK and Scottish tax rules as at 13 October 2026. It is not personal advice. Rates and thresholds change, so speak to us about your own situation.