What Expenses Can a Tradesperson Claim on Tax?
Most UK tradespeople underclaim on tax every single year — leaving money on the table that's legally theirs to keep. This guide covers every expense category you can claim, so you're not paying a penny more than you need to.
HMRC allows you to deduct legitimate business expenses from your income before calculating your tax bill. The lower your taxable profit, the less tax you pay. It really is that simple.
The golden ruleAn expense is allowable if it is incurred wholly and exclusively for the purpose of your business. If something is used partly for business and partly personal — a mobile phone, for example — you can only claim the business proportion.
Tools and Equipment
Tools are one of your biggest and most straightforward expense categories as a tradesperson.
What you can claim
- Hand tools — drills, saws, spanners, screwdrivers, measuring equipment
- Power tools — angle grinders, nail guns, tile cutters
- Specialist equipment relevant to your trade
- Replacement parts and accessories for existing tools
- Tool storage — toolboxes, racking, storage systems
- Safety equipment — hard hats, harnesses, hearing protection
Annual Investment Allowance: For larger equipment purchases, the AIA lets you deduct the full cost in the year of purchase rather than spreading it over several years. The current allowance is £1 million per year — more than enough for any sole trader.
Vehicle and Travel Costs
Getting from job to job is a core part of running a trade business. HMRC lets you claim the costs — but there are two methods and you need to pick one.
Method 1 — Flat mileage rate (simpler)
- 45p per mile for the first 10,000 business miles in the tax year
- 25p per mile above 10,000 miles
- Keep a mileage log: date, destination, reason, and miles driven
Method 2 — Actual costs
- Claim the business proportion of fuel, insurance, road tax, MOT, servicing, and repairs
- If you use your van 80% for business, claim 80% of running costs
- Can be higher if you drive a lot or run an expensive vehicle
You cannot switch between methods for the same vehicle, so choose carefully. Most sole traders find the mileage rate simpler to administer.
Other travel expenses you can claim
- Parking fees on job sites
- Congestion charges and road tolls on business journeys
- Public transport costs for business travel
- Accommodation and subsistence when working away from home overnight
Materials and Stock
What you can claim
- Raw materials used on jobs — pipe, cable, timber, plasterboard, paint
- Fixings and consumables — screws, tape, sealants, adhesives
- Materials purchased on behalf of customers and recharged to them
- Waste disposal costs for materials removed from job sites
Keep receipts for every materials purchase. Good accounting software like Xero lets you photograph receipts on site and logs them automatically.
Clothing and Workwear
Everyday clothing is not claimable — HMRC is very clear on this. But genuine workwear and PPE is a legitimate business expense.
What you can claim
- Branded workwear with your company logo
- High-visibility clothing
- Steel-toecapped boots and safety footwear
- Overalls, work trousers, and trade-specific clothing
- Hard hats, gloves, safety glasses, and other PPE
- Waterproof and weatherproof work clothing
What you cannot claim
- Ordinary clothing you could wear outside of work — even if you only wear it for work
- Suits or smart clothing unless it's a required uniform
Insurance
What you can claim
- Public liability insurance
- Employer's liability insurance if you have staff
- Professional indemnity insurance
- Tool insurance
- Van and vehicle insurance — the business proportion
- Income protection insurance
Phone and Communication
What you can claim
- Business proportion of your mobile phone contract
- A dedicated business phone — fully claimable if used solely for business
- Business proportion of your home broadband if you use it for work
- Business-specific communication tools or software
If your phone is used 70% for business and 30% personally, claim 70% of the bill.
Marketing and Advertising
What you can claim
- Website hosting and domain registration
- Website design and development costs
- Google Ads and Facebook Ads spend
- Leaflets, flyers, and printed marketing materials
- Business cards
- Van livery, site boards, and premises signage
- Directory listings — Checkatrade, Rated People, Yell
- Social media advertising
Software Subscriptions
This is an area many tradespeople forget about entirely. If you're paying monthly subscriptions for business software, every one of them belongs on your expense list.
What you can claim
- Job management software — Jobber, Tradify
- Accounting software — Xero, QuickBooks, Sage
- Invoicing tools
- Email marketing platforms
- Design tools — Canva Pro
- Microsoft 365 or Google Workspace
- Any other software used wholly for business purposes
Professional Fees
What you can claim
- Accountant fees
- Bookkeeping costs
- Legal fees for business matters — contract disputes, debt recovery
- Professional membership fees relevant to your trade — NICEIC, Gas Safe, CIPHE
- Trade association memberships
Training and Professional Development
What you can claim
- Training courses directly related to your existing trade
- Refresher courses — first aid, asbestos awareness, working at height
- Certification renewals — Gas Safe, NICEIC, Part P
- Industry conferences and events
What you cannot claim
- Training for a completely new trade or profession — HMRC considers this personal development, not a business cost
Home Office Costs
If you do any admin work from home — writing quotes, managing invoices, responding to emails — you can claim a proportion of your household costs.
Simplified expenses (easiest)
- 25–50 hours per month working from home — £10/month
- 51–100 hours per month — £18/month
- 101+ hours per month — £26/month
For most sole traders the simplified rate is easier to administer. The difference in tax saving versus calculating actual costs is usually modest.
Bank Charges and Finance Costs
What you can claim
- Business bank account fees and charges
- Interest on business loans
- Hire purchase interest on business equipment
- Credit card charges on business purchases
- Merchant service fees if you take card payments
What You Cannot Claim
Not allowable
- Personal clothing not used as workwear
- Food and drink — unless staying away from home overnight on a business trip
- Fines and penalties — including parking fines, even if received while working
- Personal proportion of your mobile phone costs
- Your daily commute to a regular place of work
How to Make Expense Claiming Effortless
The key to claiming everything you're entitled to is keeping good records throughout the year — not scrambling to remember everything in January.
The simplest way is with accounting software. Xero and QuickBooks both let you photograph receipts on your phone immediately after a purchase, categorise them on the spot, and sync everything with your bank automatically. By the time Self Assessment comes around, your expenses are already organised.
Jobber handles your job management and invoicing, while Xero keeps your accounts in order. Together they make sure nothing slips through the cracks at tax time.
Try Jobber Free for 14 Days →The Bottom Line
Claiming every allowable expense is one of the most legitimate and effective ways to reduce your tax bill as a tradesperson. Most tradespeople underclaim because they don't know what they're entitled to — hopefully this guide changes that.
Go through each category and make sure you're claiming everything that applies to your business. And if you're not already using accounting software to track expenses automatically, now is the time to start.
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