If you’re self-employed as a sole trader or in a partnership, knowing which costs you can deduct from your income before working out your tax bill makes a real difference to what you pay.
Common allowable expenses
- Office and premises costs
- Stock, materials and direct costs of the work you do
- Business travel, but not ordinary commuting
- Marketing and website costs
- Professional fees, insurance and bank charges
- A reasonable proportion of costs if you work from home
Using the cash basis
Many sole traders and partnerships can use the cash basis for their accounts, recording income and expenses when money actually changes hands rather than when invoiced. This simplifies bookkeeping for many small businesses, though it isn’t right for everyone.
Keeping good records
Whichever expenses you’re claiming, keeping organised records — receipts, invoices, and a simple log of what each cost relates to — makes your Self Assessment return quicker to prepare and easier to defend if HMRC ever asks questions.
Not sure if something qualifies? Get in touch and we’ll talk it through.
