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Sole trader expenses: what you can usually claim

A sole trader can usually include allowable business running costs when working out taxable profit, but the detail depends on the facts. Keep proof for each cost and be especially careful with mixed-use items, where something is partly business and partly personal. If you use the trading allowance instead of actual expenses, you cannot also deduct those itemised expenses. A practical guide to expenses that keeps the language simple and the evidence requirements clear.

Key takeaways

• The question is not only "did I buy it?" but "was it for the business and can I prove it?"
• Mixed-use expenses need a sensible split and a note explaining the method.
• The trading allowance can simplify small income, but it changes how expenses are treated.
• Good categories help you spot issues before the tax return deadline.

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