Free deductible expenses checklist

Starting your business and managing expenses doesn’t have to be complicated. Here’s a clear, checklist-style summary of tax-deductible expenses for sole traders and limited companies.

Why track tax‑deductible expenses?

Knowing what you can claim ensures you’re compliant with HMRC and helps reduce your taxable profits. Proper record-keeping is essential since expenses must be wholly and exclusively for business use. Shared-use items require apportionment 

What types of expenses can you claim?

Here are the main categories you can claim, depending on your business structure:

• Office, admin & home-office costs
  Phones, internet, stationery, software, rent, utilities—claim the business proportion

• Motor & travel
  Business mileage, fuel, insurance, public transport, hotels, and meals on trips. Not included: commuting

• Uniforms & specialist clothing
  Work-specific or protective gear; everyday attire isn’t allowed 

• Staff, subcontractors & payroll
  Wages, employer NI, pensions, agency/subcontractor fees, staff training 

• Stock & equipment
  Goods bought for resale or manufacturing, including packaging. Long-term items fall under capital allowances 

• Capital allowances
  Spread deduction of high-value assets via AIA or first-year allowances up to £1 m 

• Professional & financial fees
  Accountant, legal and surveyor fees; insurance; banking charges; loan interest; bad debts (cash basis) 

• Marketing & subscriptions
  Advertising (online and print), websites, journals, and professional memberships

• Training
  Courses that maintain or improve skills in your current business; not for new ventures 

What’s excluded?

• Commuting

• Personal clothing

• Client entertainment and gifts (unless trivial staff benefits) 

• Legal costs for capital purchases or breaking the law (like fines) 

• Dividend payments 

Key reminders:

• Whole & exclusive rule: Shared expenses must be proportioned.

• Records required: Keep receipts, logs, and evidence for at least six years

• Choose accounting method carefully: Traditional vs. cash basis affects claiming for equipment and home-related costs.

• Capital allowances: Use AIA (up to £1 m) for eligible assets; others via writing-down allowance 

While the list covers most situations, always check specifics — especially around shared use, capital allowances, and proper documentation. Considering getting professional advice is wise, particularly for complex claims or larger capital purchases