Sole Trader Expenses Checklist: The Categories Most People Forget
Quick Answer
Many self-employed people miss legitimate expenses because they don't realise they're claimable. This checklist covers the main categories—from obvious ones like software and travel to often-forgotten items like bank fees, insurance, and home office costs. Every expense you claim reduces your taxable profit.
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The Golden Rule
An expense is allowable if it's "wholly and exclusively" for business purposes.
For items with mixed personal/business use (like your phone), you claim the business portion only.
The Master Checklist
Use this to review what you might be missing. Tick off what applies to you.
💻 Technology & Software
- Computer / laptop (business portion)
- Monitor, keyboard, mouse
- Printer and ink/toner
- Phone (business portion)
- Tablet
- External hard drives / storage
- Software subscriptions (design, accounting, productivity)
- Cloud storage (Dropbox, Google Drive, etc.)
- Domain names
- Web hosting
- Website maintenance / development costs
- Email service (if paid)
- Project management tools
- Password manager (if for business)
🏠 Home Office
- Portion of rent/mortgage interest
- Portion of utilities (gas, electric, water)
- Portion of council tax
- Portion of home insurance
- Internet (business portion)
- Office furniture (desk, chair)
- Simplified expenses flat rate (alternative to actual costs)
See our home office guide for how to calculate.
🚗 Travel & Transport
- Train, bus, taxi fares (business travel)
- Mileage allowance (if using own vehicle)
- Fuel (if not using mileage allowance)
- Parking (for business trips)
- Congestion charge (business journeys)
- Car insurance (business portion, if not using mileage)
- Car repairs/servicing (business portion)
- Bicycle (if used for business)
- Hotel/accommodation (overnight business trips)
- Flights (business travel)
Note: Commuting to a regular workplace is NOT deductible.
📦 Materials & Stock
- Raw materials
- Stock for resale
- Packaging
- Shipping costs
- Samples
📝 Office Supplies
- Stationery (pens, notebooks, paper)
- Printer paper
- Envelopes, stamps
- Business cards
- Folders, files, storage boxes
- Cleaning supplies (for business premises)
👔 Professional Services
- Accountant fees
- Bookkeeper fees
- Legal fees (business-related)
- Consultancy fees
- Virtual assistant
- Translation services
- Transcription services
🛡️ Insurance
- Professional indemnity insurance
- Public liability insurance
- Product liability insurance
- Cyber insurance
- Equipment insurance
💰 Financial Costs
- Business bank account fees
- Card processing fees (Stripe, PayPal, Square, etc.)
- Accounting software subscription
- Interest on business loans (not capital)
- Invoice factoring fees
- Currency conversion fees (for international work)
📣 Marketing & Advertising
- Google Ads
- Facebook/Instagram ads
- LinkedIn Premium / advertising
- Print advertising
- Flyers, brochures
- Directory listings
- Sponsorships
- PR agency fees
- Promotional materials / swag
- Photography for marketing
🎓 Training & Development
- Online courses (relevant to current business)
- Workshops and seminars
- Books and publications (business-related)
- Conference tickets
- Professional qualifications (if maintaining existing skills)
Caution: Training for a new career isn't usually allowable—only courses that update or maintain skills for your current business.
🏢 Professional Memberships
- Trade association membership
- Professional body membership (e.g., IPSE, ACM)
- Union membership
- Regulatory registration fees
📞 Communication
- Phone contract (business portion)
- Phone handset (business portion)
- Business landline
- VoIP service
- Video conferencing subscription (Zoom, Teams, etc.)
🔧 Equipment & Tools
- Tools of your trade
- Specialist equipment
- Safety equipment
- Repairs and maintenance
📋 Subscriptions & Memberships
- Trade publications
- Industry journals
- Coworking space membership
- Professional network subscriptions
Categories People Forget Most Often
- Bank fees – Monthly charges, transaction fees
- Card processing fees – Stripe, PayPal, etc.
- Insurance – PI, PL, equipment
- Home office costs – Even the simplified flat rate helps
- Professional memberships – Unions, trade bodies
- Software subscriptions – Small monthly amounts add up
- Training – Courses relevant to your business
- Phone – The business-use portion
Mixed-Use Items: How to Handle
For things you use personally and for business:
- Estimate the business-use percentage
- Claim only that portion
- Keep a note of how you calculated it
Examples:
| Item | Total Cost | Business Use | Claim |
|---|---|---|---|
| Phone | £40/month | 70% | £28/month |
| Internet | £45/month | 50% | £22.50/month |
| Laptop | £1,000 | 80% | £800 |
Be honest. HMRC may ask how you calculated the split.
What You CAN'T Claim
- Everyday clothing (even if you wear it for work)
- Client entertaining (meals, drinks for clients)
- Fines and penalties
- Your own drawings/salary
- Personal living expenses
- Childcare
- Gym membership (unless you're a fitness professional)
- Speeding fines
- Donations to political parties
Common Mistakes
1. Not claiming because "it's only a few pounds"
Small expenses add up. £20/month = £240/year = ~£50 tax saved.
2. Forgetting annual subscriptions
You pay once a year—easy to forget. Check bank statements.
3. Not splitting mixed-use items
Claim the business portion, not nothing.
4. Losing receipts
Store them digitally as you go. See our record keeping guide.
5. Overclaiming
Claiming 100% of a personal phone is risky. Be proportionate.
FAQ
Can I claim clothes?
Only specific uniforms, costumes, or protective gear. Normal work clothes don't count.
Can I claim food?
Rarely. Meals during overnight business trips are usually fine. Day-to-day lunches are not.
Can I claim my commute?
No. Travel from home to a regular workplace isn't deductible.
Can I claim if I work from home?
Yes—either simplified flat rate or proportion of actual costs. See our home office guide.
Do I need receipts?
Yes, for evidence. Digital copies are fine.
Can I claim equipment I already owned?
Generally no—only expenses incurred during the tax year for business use.
What about items bought before I registered?
Some start-up costs incurred before trading can be claimed. Check HMRC rules.
How do I know what percentage is business use?
Estimate realistically. Track usage if possible (e.g., mileage logs, call logs).
Can I claim Amazon Prime?
If you use it primarily for business deliveries, a portion may be claimable. Be cautious.
What if I forgot to claim something?
You can amend your return within 12 months of the deadline. After that, it's harder.
Next Steps
Go through this checklist and review your bank statements. You're probably missing something.
Read our detailed guides on allowable expenses, home office and mileage, and record keeping.
Back to the Learn hub.
This guide is for general information only. Tax rules change, and everyone's situation is different. Always check the latest HMRC guidance and consider speaking to a qualified accountant if you're unsure.