13 March 2026 5 min read

Self-Employed? Here’s What You Can Claim as Allowable Expenses in 2025/26

If you’re self-employed, every legitimate expense you claim reduces your tax bill. Yet HMRC estimates that millions of self-employed workers under-claim on their tax returns, paying more than they need to. Here’s a practical guide to what you can claim for the 2025/26 tax year, with real examples showing how much you could save.

Self-employed allowable expenses UK 2026

How expenses reduce your tax bill

Allowable expenses are deducted from your income before tax is calculated. If you're a basic-rate taxpayer, every £100 of legitimate expenses saves you £29 (20% income tax + 9% Class 4 NI). For a higher-rate taxpayer, it's £42 per £100.

That means a self-employed person on £40,000 who claims £5,000 in expenses saves £1,450 in tax. That's real money — and many people are leaving it on the table.

The expenses most people miss

1. Working from home (£312 – £1,500+ per year)

If you work from home regularly, you have two options:

  • Simplified method: Claim a flat rate based on hours worked at home — 25–50 hours/month = £10/month; 51–100 hours = £18/month; 101+ hours = £26/month. No receipts needed.
  • Actual costs method: Calculate the proportion of household bills (rent/mortgage interest, electricity, gas, council tax, broadband) used for business. Often works out significantly more.

2. Business mileage (up to £4,500+/year)

If you drive for business, you can claim 45p per mile for the first 10,000 miles, then 25p per mile after that. This covers fuel, insurance, wear and tear — everything. You just need a simple log of dates, destinations, and miles.

Example: A self-employed electrician driving 12,000 business miles per year can claim:

  • First 10,000 miles × 45p = £4,500
  • Next 2,000 miles × 25p = £500
  • Total claim: £5,000 — saving £1,450 in tax (basic rate)

3. Phone and broadband

Claim the business proportion of your personal phone and broadband bills. If you estimate 40% business use on a £50/month phone contract, that's £240/year you can claim.

4. Professional subscriptions and software

Software subscriptions (accounting software, design tools, cloud storage), professional body memberships, trade magazines — all fully deductible.

5. Training and development

Courses and training that update or maintain existing skills for your current trade are allowable. A web developer attending a JavaScript conference, or a plumber doing a gas safety refresher — both claimable.

Quick savings calculator

Here's how much typical expense claims save at basic rate (29%) and higher rate (42%):

Annual expense Basic rate saving Higher rate saving
Home office (flat rate) £90 £131
10,000 business miles £1,305 £1,890
Phone & broadband (40%) £70 £101
Software & subscriptions £87 £126
Total savings £1,552 £2,248

What you can't claim

HMRC is strict about the line between business and personal:

  • Commuting: Travel between home and your regular workplace isn't claimable (but travel to client sites and temporary workplaces is)
  • Clothing: Everyday clothes aren't allowable, even if you only wear them for work. Uniforms, protective gear, and costumes are fine
  • Client entertainment: Taking clients out for dinner is not an allowable expense (business meals while travelling solo are)
  • Fines and penalties: Parking tickets, late filing penalties — not claimable

Explore all HMRC categories: Our Allowable Expenses Guide breaks down every claimable category with examples and tips. You can also use the Income Tax Calculator to see how expenses reduce your overall tax bill.