Claiming Expenses as a Sole Trader: Full Guide for UK Freelancers (2025)
As a self-employed freelancer or sole trader in the UK, claiming legitimate business expenses helps reduce your tax bill. But understanding what you can and can’t claim is essential to avoid issues with HMRC.
Here’s a practical, 2025 guide to claiming expenses as a UK sole trader.
✅ What Counts as a Business Expense?
HMRC allows you to deduct expenses that are “wholly and exclusively” for business use. If an expense is partly personal, you can usually only claim the business portion.
🛠️ Common Allowable Expenses for UK Freelancers
1. Home Office Costs
- A portion of rent, mortgage interest, council tax, utilities
- Must be based on reasonable business use
- Alternatively, use HMRC’s simplified flat rate
2. Office Supplies & Equipment
- Computers, printers, phones
- Stationery, software
- Business subscriptions
3. Travel & Mileage
- Fuel, insurance, repairs if you use a vehicle for work
- Public transport for business trips
- Parking, tolls, congestion charges
Note: Commuting to a regular workplace doesn’t count — only business-related travel.
4. Professional Services
- Accountant or bookkeeper fees
- Legal advice
- Business insurance👉 Compare freelancer insurance options
5. Marketing & Website Costs
- Domain registration, web hosting
- Advertising
- Business cards, promotional materials
⚠️ Expenses You Can’t Claim
- Everyday clothing (unless protective gear or uniforms)
- Personal expenses unrelated to the business
- Client entertainment (generally not allowable)
✅ Simplified Expenses Option
HMRC offers simplified flat rates for:
- Business mileage
- Working from home
- Living on your business premises
Ideal for keeping things easy if your claims are small.
📌 Final Thoughts
Claiming allowable expenses keeps your freelance business tax-efficient. But keep clear records, only claim legitimate costs, and seek professional advice if unsure.