💷 What Can You Claim as a Business Expense? A Quick Guide for SMEs & Sole Traders

One of the most common questions I get from small business owners is: “What can I actually claim as a business expense?” Getting it right can reduce your tax bill — but getting it wrong could raise red flags with HMRC.

Here’s a quick guide 👇

✅ Allowable Business Expenses

• Office costs (rent, utilities, stationery, software)

• Travel costs (fuel, train tickets, parking – but not commuting to your usual workplace)

• Staff costs (salaries, pensions, subcontractors)

• Marketing (website, advertising, social media costs)

• Training (courses to improve skills related to your business)

  
  

🚫 Expenses You Cannot Claim

• Personal expenses (holidays, non-business meals, clothing that isn’t protective or uniform)

• Client entertainment (meals, hospitality, events – not allowable for tax relief)

• Fines or penalties

💡 Tip for Sole Traders: If you work from home, you may be able to claim a proportion of household bills such as electricity, internet, and rent.

The golden rule 👉 An expense must be “wholly and exclusively” for business purposes to be allowable.

✅ Keeping accurate records ensures you don’t miss out on deductions you’re entitled to — and avoids HMRC headaches later.

👉 What’s the most confusing business expense you’ve come across?

#SmallBusiness #Accounting #TaxTips #SME #SoleTrader