Tax and HMRCThe Tradesman's Tax
The Tradesman's Tax
Deduction Checklist.
Common expenses, and the ones almost nobody claims. What you can put through your books before your next Self Assessment or MTD update.
This is general guidance for UK sole traders and CIS subcontractors, not personal advice. Rules have exceptions, and what applies depends on how your business is set up. Use this as a prompt for what to send over, not a final answer, and check anything you're unsure about before you file.
Vehicle & travel
- Mileage on your own vehicle45p a mile for the first 10,000 business miles each tax year, 25p after that. Covers fuel, wear, insurance and servicing in one go, so you can't also claim these separately if you use this method.
- Actual vehicle costs instead of mileageFuel, insurance, repairs, and servicing, claimed at their real cost if you'd rather track it that way. You have to pick one method per vehicle and stick with it.
- ParkingBusiness parking is allowable. Parking and speeding fines are not, even if you were on a job.
- Congestion charge and clean air zone feesAllowable when the journey was for work.
- Van finance interestThe interest portion of a loan or hire purchase agreement on a van is allowable. The capital repayment itself isn't, that's covered separately through capital allowances.
- Tolls and ferry costsFor business journeys.
Tools & equipment
- Small hand toolsClaimed in full the year you buy them, most don't need to be spread out or "capitalised".
- Bigger kit and machineryCovered by the Annual Investment Allowance, which lets you claim 100% of the cost in the year of purchase, up to a very high annual limit that covers almost any tradesman's spend.
- Replacing worn or broken toolsThe replacement cost is deductible, same as the original purchase.
- Tool hireScaffold towers, generators, specialist equipment for a specific job.
- Tool and equipment insuranceCover against theft or damage.
- ConsumablesDrill bits, blades, fixings, tape, sealant, anything used up on the job.
Protective clothing & PPE
- Branded workwear and uniformAnything with a logo, or clearly identifiable as work-specific.
- Protective gearSteel-toe boots, hi-vis, hard hats, gloves, ear defenders, safety glasses.
- Laundering protective clothing and uniformThe cost of keeping it clean.
Not allowable
- Everyday clothing that could pass as normal wear, even if you only actually wear it for work, plain jeans or a plain t-shirt for example
Insurance & professional costs
- Public liability and professional indemnity insurance
- Trade body and professional subscriptionsNICEIC, Gas Safe Register, CSCS card renewal, and similar.
- Accountancy and bookkeeping feesFully deductible, so the actual cost of your books being done is lower than the sticker price.
- Bank charges and interest on a business loan or overdraft
Home & admin
- Use of home for adminEven if you're rarely there, doing quotes, invoicing, or storing paperwork from home counts. Claimed either as a flat rate based on hours worked from home each month, or as an actual proportion of household costs.
- Business phone and mobile contractIn full if it's a dedicated business line, or the business-use proportion if it's shared with personal use.
- Software and appsInvoicing tools, job scheduling apps, accounting software.
- Stationery, postage, printing
Growing the business
- Website and marketingA website, business cards, van signwriting, online advertising.
- Training to maintain or improve skills in your existing tradeRefresher courses, updated certifications, new techniques within your trade.
- Waste disposal and skip hire
Not allowable
- Training for a completely new trade or qualification, HMRC treats this as gaining a new skill rather than maintaining your existing one, so it isn't deductible the same way
- Client entertaining, meals, drinks, or gifts for customers
Often missed
Costs from before you started trading can still count. If you spent money setting up, tools, training, insurance, a website, in the seven years before your first invoice, it can usually be treated as if you spent it on day one of the business. Most tradesmen never claim this because they don't know it exists.
Also often missed
If a customer genuinely never pays you and you write the debt off, that unpaid amount can reduce your taxable profit. Keep a record of the job, the invoice, and your attempts to chase it.
Not sure what applies to you?
Send your receipts over and we'll sort out what's claimable as part of the job.
Book a free call →This guide is general information for UK sole traders and CIS subcontractors correct at the time of writing, and isn't personalised tax advice. Tax rules change and individual circumstances vary, always check anything you're unsure about before relying on it.
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