top of page

💼 What Business Expenses Can I Claim in the UK?

If you run a business in the UK—whether you're a sole trader, freelancer or limited company—you may be wondering: what business expenses can I legally claim to reduce my tax bill?

At Hiclass Accounting, we make it easy for UK business owners to understand allowable expenses and stay compliant with HMRC while maximising what you can claim.

​

🔍 What Are Allowable Business Expenses?

Allowable expenses are costs that are “wholly and exclusively” for the purpose of running your business. These business tax deductions reduce your taxable profit, meaning you pay less income tax or corporation tax.

By understanding which expenses are allowable, you can keep more of your hard-earned money while staying on the right side of HMRC.

​​​

📋 List of Allowable Business Expenses (UK)

Here are some common UK business expenses you can legally claim:

​

1. Office & Admin Costs

  • Stationery and postage

  • Office supplies

  • Software subscriptions (e.g. Microsoft 365, Xero, Adobe)

​

2. Equipment & Tools

  • Computers, laptops, mobile phones

  • Printers, routers, and accessories

  • Repairs and replacements of business tools

​

3. Business Travel Expenses

  • Business mileage (using HMRC-approved rates)

  • Public transport fares (train, bus, taxi)

  • Hotel stays and meals while travelling for work

  • Congestion charges, tolls, and parking fees

Note: Commuting from home to a permanent place of work is not claimable.

​

4. Working from Home Expenses

If you use your home for business purposes, you can claim a portion of:

  • Rent or mortgage interest

  • Council tax

  • Utilities (electricity, heating, water)

  • Broadband and telephone bills

Or use HMRC’s simplified expenses flat rate method—we’ll help you choose what’s best.

​

5. Phone & Internet

  • Business calls and contracts

  • A reasonable portion of your home broadband or mobile bill

​

6. Stock, Materials & Packaging

  • Goods for resale

  • Raw materials and production costs

  • Packaging, shipping, and delivery costs

​

7. Marketing & Advertising

  • Website design and hosting

  • Online ads (Google, Facebook, Instagram)

  • Business cards and printed materials

  • PR and sponsorships directly related to business promotion

​

8. Professional & Legal Fees

  • Accountant or bookkeeper fees (yes, we’re claimable!)

  • Business-related legal advice

  • Business insurance policies

​

9. Staff Costs

  • Employee wages

  • Employer’s NI and pension contributions

  • Staff training

  • Freelancers or subcontractors (if genuinely self-employed)

​

10. Premises Costs (If Applicable)

  • Rent for business premises

  • Business rates

  • Electricity, gas, water

  • Security and cleaning costs

​

❌ What Business Expenses Can't I Claim?

Certain expenses may feel “business-related” but HMRC doesn’t consider them allowable. These include:

  • Personal expenses (not exclusively for business use)

  • Client entertaining (meals, drinks, gifts)

  • Daily lunches or coffees

  • Fines and penalties

  • Everyday clothing (unless it’s branded uniform or protective gear)

Knowing what you can’t claim is just as important as knowing what you can.

​

🧮 How Hiclass Accounting Can Help

At Hiclass Accounting, we specialise in helping UK small businesses and self-employed professionals stay tax-efficient and compliant. We’ll make sure you:

  • Understand exactly what expenses you can claim

  • Avoid risky claims that could trigger an HMRC enquiry

  • Keep clean, simple records that support your tax return

💬 Need advice on a specific expense?
📩 Want help setting up a simple expense-tracking system?


We’re here to help you get it right.

​

​

💡 Ready to Make the Most of Your Business Expenses?

We’ll guide you through what’s allowed, what’s not, and how to claim business expenses properly—so you keep more of your profit, stress-free.

​

📞 Book a free consultation with Hiclass Accounting today.

bottom of page