Top Tax-Deductible Expenses for Sole Traders: What You Can Claim
Knowing what you can claim as a sole trader isn’t always straightforward—but getting it right can save you money. To help you stay tax-efficient, we’ve outlined the top tax-deductible expenses that apply specifically to sole traders. (Please note: These do not apply to limited companies.)
1. Home Office Use
If you work from home, you can claim a portion of your household expenses. A simple method is claiming a flat rate of £4 per week for using your home as an office.
2. Phone and Line Rental
You can claim a proportion of your telephone and line rental costs, but only for business use. To do this accurately, keep a record of your business calls. Your itemised phone bill can also support your claim when submitting your tax return.
3. Business Mileage
You can claim 45p per mile for the first 10,000 business miles, and 25p per mile thereafter. If you use a bicycle for business travel, you can claim 20p per mile. However, mileage for commuting to your regular place of work isn’t allowed.
4. Insurance
If you pay for business-related insurance—such as public liability or professional indemnity—you can claim these costs as deductible.
5. Marketing and Advertising
All spending on PR, marketing, and advertising is tax deductible. This includes printed materials, online ads, and sponsored content.
6. Broadband and Internet
Like your phone, you can claim a percentage of your broadband costs, based on business use.
7. Website and Hosting
Website hosting fees and domain costs are also eligible for tax relief.
8. Professional Subscriptions
If you subscribe to trade journals or industry-specific magazines relevant to your business, you can claim these too.
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