Allowable business expenses for self-employed: HMRC-approved categories list

Summary

Updated February 2026 — Sources: GOV.UK self-employed expenses, HMRC BIM37600.

Claiming allowable business expenses reduces your taxable profit and therefore income tax and Class 4 NIC. HMRC requires expenses to be wholly and exclusively for business — personal costs are never deductible.

1. Common allowable categories

Category	Examples
Office costs	Stationery, printing, phone, software subscriptions
Travel	Business mileage (45p/25p per mile), train fares, parking
Subsistence	Meals on overnight business trips (not daily lunch)
Professional fees	Accountant, solicitor, professional memberships
Marketing	Website, advertising, business cards
Insurance	Professional indemnity, public liability
Bank charges	Business account fees, card processing

2. Non-allowable expenses

• Personal clothing (unless specialist uniform or protective gear)
• Client entertainment and hospitality
• Fines and penalties
• Personal pension contributions (separate tax relief applies)
• Domestic expenses not apportioned for business use

3. Record-keeping

Keep receipts, invoices, and bank statements for at least five years. Digital records are acceptable. For mileage, maintain a log with date, destination, purpose, and miles driven.

4. Sources

• GOV.UK — Expenses if you're self-employed
• GOV.UK — Simplified expenses