Allowable Expenses for the Self Employed

Claiming allowable expenses is a great way of reducing your tax bill by reducing your taxable profits. However, you need to make sure that the expenses you are claiming for are deemed as allowable by HMRC. Bear in mind, if you claim for anything you need to be able to provide the receipt if you are subject to a tax investigation.

Allowable Home Office Costs:

  • Home rental costs
  • Mortgage interest costs
  • Council Tax
  • Line rental, internet, phone bill
  • Heating, electricity & other utilities
  • Home insurance

Non-Allowable Home Office Costs:

  • Your mortgage (you can only claim the interest repayments as an allowable expense)


Allowable Travel expenses:

  • Fuel
  • MOT, servicing & repairs
  • Parking
  • Insurance
  • Hotel rooms (when staying away for business purposes)
  • Train, taxi & bus Fares
  • Meals on overnight stays

Non-Allowable Travel Expenses:

  • Parking Tickets and other fines – even if you got the fine whilst away working.
  • Travel between home and work
  • Other non-work related travel costs


Allowable Clothing Expenses:

  • Protective clothing
  • Uniform
  • Costumes

Non-Allowable Clothing Expense:

  • Any other clothing even if you are required to wear it.


Other Non-Allowable Expenses:

  • Repayments of loans, overdrafts or finance arrangements.
  • Entertaining clients, suppliers and customers
  • Event hospitality


If you have any questions about allowable expenses or want to reduce your Self-Assessment Tax bill then please contact us on 01733 699033.

LeeP Accountants

Helping you keep more of your money