Understanding what you can and cannot claim as a business expense helps reduce your tax bill legally and safely. HMRC allows expenses that are “wholly and exclusively” for business use—but some areas are often misunderstood.
This guide breaks things down clearly.
Travel & Vehicle Costs
You can claim business-related travel, but not ordinary commuting.
Mileage
Parking (Not Fines)
Tolls & Congestion Charges
Public Transport for Work
Working From HomeIf you work from home, you can claim part of your household costs.
• Use HMRC’s approved mileage rates
• Covers fuel, wear and tear, insurance, and servicing
• Simple and commonly used
• Parking fees for business journeys are allowable
• Parking fines or penalties are never allowed
• Allowed if the journey is for business purposes
• Trains, buses, taxis for business trips are allowable
• Daily commuting to a permanent workplace is not
Simplified Flat Rate
HMRC offers a flat monthly amount based on hours worked at home.
Proportion of Household Costs
• Easy
• No calculations required
Alternatively, you can claim a reasonable percentage of:
The percentage should be based on:
Safety Gear & PPE
Small Equipment
Stationery & Printing Supplies
Professional & Administrative Costs
• Utilities (gas, electricity, water)
• Broadband
• Rent or mortgage interest (not capital repayments)
• Council tax
• Time used for work
• Space used for work
Tools, Equipment & Consumables
You can claim items used to carry out your work.
Tools
• Hand tools, specialist equipment
• Repair or replacement costs
• Helmets, gloves, boots, masks, goggles
• Fully allowable if required for work
• Keyboards, mice, cables, chargers
• Low-cost items usually expensed immediately
• Paper, ink, envelopes, notebooks
• Printing costs related to business activity
These are common and fully allowable.
Broadband
Apps & Subscriptions
Clothing (Often Misunderstood)
• Accountant fees
• Bookkeeping software
• Business bank charges
• Professional indemnity, public liability, or employer’s insurance
Phone, Internet & Software
You can claim the business-use portion.
Mobile Phone
• Business-only phone: usually 100% allowable
• Mixed-use phone: claim a reasonable percentage
• If already installed at home: claim business portion only
• If installed purely for business: may be fully allowable
• Software, cloud storage, design tools, project management apps
• Must be used for work
You Can Claim:
You Cannot Claim:
• Protective clothing
• Safety wear and PPE
• Branded workwear with a permanent logo
• Everyday clothing
• Suits, shoes, or clothes worn outside work
Even if you only wear them for work, HMRC treats these as personal.
Even if you only wear them for work, HMRC treats these as personal.