Self-assessment expenses you didn’t know you could claim

If you’re self-employed, whether as a sole trader, a limited company director, or a shareholder, you’ll need to manage your tax returns through self-assessment. 

Your business will generate a range of running costs and you are entitled to deduct some of these costs when you calculate your taxable profit.

Self-assessment is a process that allows individuals to calculate their tax liability and claim any expenses they are entitled to.

It is important to understand the different types of expenses you can claim in order to get the most out of your self-assessment. The income tax you’re required to pay will be based on your self-assessment.  

This blog will discuss the various types of self-assessment expenses you can claim, including travel, accommodation, and other business-related costs. We will also look at how you can ensure that your claims are valid and accepted by HMRC.

Knowing what expenses you can claim as a self-employed individual is an important part of managing your finances. 

Whether you are just starting out or have been running your business for years, understanding what self-assessment expenses you can claim could help you maximise your income by optimising your tax bill.

Let’s explore the types of self-assessment expenses that you can claim, from business travel costs to professional fees, as well as the best practices when it comes to tracking and claiming these expenses.

What costs can I claim as allowable expenses? 🤷

Remember, at Expend, we’re here to make the process of managing and integrating your business expenses into your company accounts as quick and easy as possible.

Read our blog ‘Business problems that can be solved with accounting software’ to learn more about managing this headache. 

Our savvy software links with accounting packages such as Xero and QuickBooks to provide a seamless view of your fully reconciled business expenses. 

Here’s a run down of self-assessment expenses you may not have known you could claim. For the full details consult His Majesty’s Customs & Revenue (HMRC).

Claimable costs include:  

Office costs, for example stationery or phone bills 📩

Businesses of all sizes and types have office and administration costs, which can include desk phones and mobile phones. The important thing, to be claimable, is that costs must be fully incurred by your business. If some costs are split, for example business and personal mobile phone costs, you need to allocate only the business calls to your company costs. 

Travel costs, for example fuel, parking, train or bus fares 🚌

Travel costs can rack up across the business year, so it’s important to keep a track of these. Business only related expenses can be set against your tax, but be sure that travel costs have been incurred just for work related travel and not social travel.

For details on business mileage allowances, see our blog How can I claim business mileage as an expense? 

Clothing expenses, for example uniforms 🦺

The costs of work specific (rather than everyday) clothing, such as protective wear, can be claimed. 

Staff costs, for example salaries or subcontractor costs 💷

The costs of employees and contractors can be significant and are claimable. So are their associated costs, such as pensions, benefits and agency fees. 

Financial costs, for example insurance or bank charges 🏦

You’re entitled to claim for the costs of professional fees in running your business, such as your accountant, as well as the costs of finance charges such as interest on business loans and leasing charges. 

Costs of your business premises, for example heating, lighting, business rates 💡

These will be some of your most significant costs, so it’s important to fully capture all of these in your record of costs. If you work from home, you can apportion some of the costs attributable to running your business.   

Advertising or marketing, for example website costs 🖥

However modest or ambitious your marketing, there will be costs. These are often overlooked by business owners, so be sure to factor them into your tax submission. 

Training courses related to your business 👨🏼‍💻

For example, refresher courses.

So, remember, it’s important to have a good understanding of your allowable expenses to help you optimise your self-assessment tax position. To learn more about how Expend can help, visit us today. 

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.