What expenses can a sole trader claim in the UK? Complete guide for tradespeople

When customers pay you, that money is not all “yours” in a tax sense. Some of it goes straight back out as timber, blades, fuel, insurance, and the other costs of running the business. HMRC lets you deduct allowable expenses from your income so you only pay tax on profit. The trick is knowing what counts, what does not, and how to prove it without a filing cabinet strapped to your roof rack.

Think of expenses as the cost of being able to say yes to the next job: without sharp blades, reliable transport, and insurance that lets you on site, you have no business at all. Claiming them correctly is not “loopholes”; it is how the tax system measures profit instead of turnover. The examples below are written for plumbers, electricians, builders, gardeners, and anyone else who invoices from a van more often than a desk.

Always tailor claims to what you actually do. A decorator who rents a unit for storage will have different receipts from a mobile gardener who works from a shed at home. Same rules, different paperwork—your job is to keep the paperwork true and complete.

The ten categories most tradespeople use

Most sole traders do not think in accounting jargon—they think in screwfix runs, fuel receipts, and blade deliveries. The categories below map how Billdr and many accountants organise your books. If an expense genuinely helps you earn profit and is not disallowed (like most client entertaining), it usually belongs in one of these buckets.

Materials and supplies

Timber, pipe, cable, sand, cement bags, fixings, plants for a job, cleaning chemicals—if you bought it to complete a customer's work, it is typically allowable. The classic mistake is mixing personal DIY with job materials on one receipt; split the trolley mentally at the till, or use separate transactions, so your records stay honest.

Tools and equipment

Drills, saws, ladders, laser levels, battery packs—tools wear out and get replaced. Larger purchases may sometimes be treated as capital assets depending on value and accounting treatment; your accountant can confirm whether you claim via allowances or as a straight expense. For day-to-day bits—blades, drill bits, PPE that is not long-lived—it is usually simpler.

Vehicle and fuel: actual costs vs mileage

You generally cannot claim both full fuel receipts and HMRC mileage rates for the same vehicle in the same way—pick a method that matches your records. Many tradespeople use the approved mileage rates for business journeys: they are simple, defensible, and do not require you to apportion every litre between home and site. If you use actual costs, you must split business vs private use carefully; a dedicated van is easier to argue than a family car with no log.

Example: you drive 8,000 business miles a year in your van. Using mileage rates, you multiply by the rate HMRC publishes for each band of miles. Using actual costs, you add servicing, tyres, insurance allocated to work, and fuel—but you need a fair private split if the vehicle is not 100% business.

Subcontractors and CIS

If you bring in another tradesperson to help on your job, their labour can be an expense. Under the Construction Industry Scheme (CIS), deductions may apply when you pay certain subcontractors. Your records should show who you paid, for which site, and the amounts after any CIS deduction. Good software tracks this so your year-end does not become a detective game.

PPE and protective clothing

Boots, hi-vis, safety specs, gloves—if it is protective and required for the work, it is usually allowable. Plain clothes you would wear anyway are a grey area; specialist work gear is easier to justify than fashion.

Business insurance

Public liability, tool cover, van insurance for business use, professional indemnity if you need it—all part of staying on site legally and safely. Keep renewal documents; they are easy to forget when they auto-renew quietly.

Phone and internet

If you use your mobile for customer calls, WhatsApp quotes, and photos, a fair percentage of the bill is often claimable. Same for home broadband if you run admin from a desk at night. Pick a reasonable percentage and stick to it—50% is not automatically allowed just because it sounds easy.

Advertising and marketing

Website hosting, printed cards, local sponsorship, sign-written van costs—if it promotes your business, it usually counts. Personal hobbies dressed up as marketing do not.

Accountant and professional fees

Your accountant's bill for preparing accounts or tax advice is typically allowable. Fines and penalties from HMRC are not—do not try to sneak them in.

Use of home as office

If you genuinely do paperwork, quotes, and scheduling from home, you can claim a portion of household costs—heating, council tax slice, rent or mortgage interest slice—based on rooms and hours used. Simplified flat rates exist for some people; ask your accountant which route fits.

What you cannot claim (common traps)

• Buying your morning bacon roll on the way to a job—personal, not business.
• Clothing that is not protective or branded workwear you would not wear on a night out.
• Entertaining clients in most cases—HMRC is strict here.
• Fines for parking or speeding—even if you were on the way to a customer.

Keeping records HMRC will trust

For every expense you want to claim, you want proof: receipt, invoice, bank line, and a note of what job it related to if it is not obvious. Photograph receipts before they fade. Use apps like Billdr so expenses land in categories your accountant and FreeAgent already understand. When MTD expectations bite, “I know I spent it” is not a record; “here is the PDF and the bank match” is.

If you are ever unsure, ask before the year ends—not the night before the deadline. The cost of a quick accountant email is tiny compared to an enquiry letter you could have avoided with one saved receipt.

Bank feeds help because they show money leaving your account, but they rarely show what you bought—pair every unexplained card payment with a receipt or invoice as soon as possible. That five-minute habit on a Friday saves days of guesswork when your accountant asks what a £240 payment to a card machine was twelve months ago.

Finally, keep your business account separate from personal spending where you can. Mixed cards are not illegal, but they are expensive in time. The cleaner your bank lines, the faster you can prove what was for work—and the more sleep you keep at year end.