What Expenses Can a Tradesperson Claim on Tax?
One of the most effective ways to reduce your tax bill as a self-employed tradesperson is to make sure you’re claiming every allowable expense you’re entitled to. Most tradespeople underclaim — leaving money on the table every single year.
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.
This guide covers every expense category a UK tradesperson can claim — so you’re not paying a penny more tax than you need to.
The Golden Rule for Claiming Expenses
Before diving into specific categories, it’s worth understanding the rule HMRC applies to all expense claims.
An expense is allowable if it is incurred wholly and exclusively for the purpose of your business.
That means if something is used partly for business and partly for personal use — a mobile phone for example — you can only claim the business proportion. Keep this principle in mind for every expense you consider claiming.
Tools and Equipment
As a tradesperson, tools are one of your biggest and most straightforward expense categories.
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 — a new van-mounted compressor, a professional tile saw — the Annual Investment Allowance 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 which covers virtually any equipment a sole trader would buy.
Vehicle and Travel Costs
Getting from job to job is a core part of running a trade business and HMRC allows you to claim the costs — but there are two methods and you need to pick one.
Method 1: Flat mileage rate Claim a set rate per mile for every business mile driven. The current HMRC rates are:
- 45p per mile for the first 10,000 miles in the tax year
- 25p per mile above 10,000 miles
This is the simpler method and works well for most sole traders. Keep a mileage log — date, destination, reason for the journey, and miles driven.
Method 2: Actual costs Claim the actual costs of running your vehicle — fuel, insurance, road tax, MOT, servicing, repairs — but only the business proportion. If you use your van 80% for business and 20% personally, you can claim 80% of the running costs.
You cannot switch between methods for the same vehicle so choose carefully. The mileage rate is simpler to administer. Actual costs can be higher if you drive a lot or have an expensive vehicle to run.
Other travel expenses you can claim:
- Parking fees on job sites
- Congestion charges and road tolls incurred on business journeys
- Public transport costs for business travel
- Accommodation and subsistence if working away from home overnight
Materials and Stock
Any materials you purchase specifically for jobs are fully claimable as a business expense.
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 makes this easy — photograph the receipt on site and it’s logged 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
Business insurance premiums are fully deductible as a business expense.
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
If you use your mobile phone for business — taking calls from customers, sending quotes, managing jobs — you can claim the business proportion of your phone bill.
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
- Any 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
Any money you spend promoting your business is claimable.
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
- Signage — van livery, site boards, premises signage
- Directory listings — Checkatrade, Rated People, Yell
- Social media advertising
Software Subscriptions
The software you use to run your business is a legitimate and fully claimable expense.
What you can claim:
- Job management software — Tradify, Jobber
- Accounting software — Xero, QuickBooks
- Invoicing tools
- Email marketing platforms — Moosend
- Design tools — Canva Pro
- Microsoft 365 or Google Workspace
- Any other software used wholly for business purposes
This is an area many tradespeople forget about entirely. If you’re paying monthly subscriptions for business software, make sure every one of them is on your expense list.
Professional Fees
Costs incurred in getting professional advice for your business are claimable.
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
Keeping your skills and qualifications up to date is a business cost and HMRC recognises this.
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 a personal development cost rather than a business one
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.
The simplified expenses method HMRC offers a flat rate for home office use based on the number of hours you work from home per month:
- 25–50 hours per month — £10/month
- 51–100 hours per month — £18/month
- 101 hours or more per month — £26/month
The actual cost method Alternatively, calculate the business proportion of your actual household costs — mortgage interest or rent, utilities, council tax — based on the number of rooms used for business and the hours worked.
For most sole traders the simplified rate is easier to administer and the difference in tax saving is 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
To be clear on the boundaries — the following are not allowable expenses:
- 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 mobile phone costs — only the business proportion
- Home to work travel — your daily commute to your regular place of work is not claimable
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 expenses in January.
The simplest way to do this 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 automatically with your bank. By the time Self Assessment comes around, your expenses are already organised and categorised.
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 your expenses automatically, now is the time to start.
Xero is the strongest option for UK tradespeople — particularly if you’re using Tradify for job management, as the two work seamlessly together.
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