HMRC expense categories for the self-employed (2026/27)
The 14 expense boxes on the Self Assessment self-employment pages, what goes in each, what you cannot claim, and the flat-rate shortcuts.
The short version. Self-employed expenses fall into 14 boxes on the Self Assessment self-employment (full) pages. gov.uk says Making Tax Digital uses the same categories as Self Assessment, so these are the headings to keep your records under.
The basic rules
- You can claim only costs that relate to the business.
- If a cost is part business and part private, claim only the business share. A £200 phone bill with £70 of business calls gives a £70 claim.
- If you use the £1,000 trading allowance, you cannot also claim expenses or capital allowances.
- Money you take out of the business for yourself is not an expense.
The 14 expense categories
Names and notes below follow HMRC's notes to the Self Assessment self-employment (full) pages. Your software may show shorter names, and some versions group advertising and entertainment differently.
| Category | Includes | Not allowable, or watch out for |
|---|---|---|
| Cost of goods bought for resale or goods used Box 17 | Raw materials, the direct costs of producing what you sell, commissions, discounts. | Goods bought for private use. Taxi, minicab and road haulage fuel goes here, not in box 20. |
| Construction industry: payments to subcontractors Box 18 | Total payments to subcontractors for any type of construction work. | Payments for non-business work. You may need to register as a contractor under the Construction Industry Scheme. |
| Wages, salaries and other staff costs Box 19 | Salaries, wages, bonuses, pensions and benefits for employees, agency fees, subcontract labour not counted elsewhere, employer's National Insurance. | Payments to yourself, your own pension or NICs. Employment costs not paid within 9 months of the period, and payments for non-business work. |
| Car, van and travel expenses Box 20 | Vehicle insurance, repairs, servicing, fuel, parking, hire charges, vehicle licence, motoring organisation membership, train, bus, air and taxi fares, hotel rooms and meals on overnight business trips. | Private motoring, fines, buying a vehicle, travel between home and business, and other meals. Flat rates are an alternative to actual costs. |
| Rent, rates, power and insurance costs Box 21 | Rent for business premises, business and water rates, light, heat, power, property insurance, security, and the business use of your home. | The private part of premises costs and the cost of buying business premises. At home, claim only the business proportion or use the flat rates. |
| Repairs and maintenance of property and equipment Box 22 | Repairs and maintenance of business premises and equipment. | Repairs, improvements or alterations to non-business parts of premises or equipment. |
| Phone, fax, stationery and other office costs Box 23 | Phone running costs, postage, stationery, printing, small office equipment, computer software if under 2 years old. | The private-use share of these costs. |
| Advertising and business entertainment costs Box 24 | Advertising in newspapers and directories, mailshots, free samples, website costs. | Entertaining clients, suppliers and customers, and hospitality at events. |
| Interest on bank and other loans Box 25 | Interest on business loans, fees for buying goods, hire purchase interest. | Repayments of the amount borrowed, and interest on any part used privately. |
| Bank, credit card and other financial charges Box 26 | Bank, overdraft and credit card charges, hire purchase and lease interest, alternative finance payments. | Capital repayments, and the part of a loan, overdraft or finance payment used privately. |
| Irrecoverable debts written off Box 27 | Only if you use traditional accounting: an amount in your turnover that is unpaid and written off. | Debts not included in turnover, debts relating to fixed assets, and general bad debts. |
| Accountancy, legal and other professional fees Box 28 | Fees for accountants, solicitors, surveyors, architects and other professionals, and indemnity insurance premiums. | The legal costs of buying property and large items of equipment, and the costs of settling tax disputes. |
| Depreciation and loss or profit on sale of assets Box 29 | Only if you use traditional accounting. | Depreciation of equipment or cars, and losses on sales of assets, are not allowable expenses. |
| Other business expenses Box 30 | Trade or professional journals and subscriptions, other sundry running costs, net VAT payments. | Payments to clubs, charities or political parties, the non-business part of any expense, and ordinary clothing. |
Flat rates instead of actual costs
Simplified expenses let you claim a flat rate for vehicles, working from home and living at your business premises. For 2026/27, a car or van is 55p a mile for the first 10,000 business miles and 25p after that; a motorcycle is 24p. Working from home is £10, £18 or £26 a month for 25 to 50, 51 to 100, or 101 or more hours worked at home. You cannot use the flat rate for a vehicle if you used cash basis and deducted its cost as an expense, or if you claimed capital allowances on it. Our mileage calculator works out the claim.
Under £90,000: income or expense is enough
For Making Tax Digital, if your turnover from a self-employment is under £90,000, you only need to record whether each transaction is income or an expense. From £90,000 you must categorise everything for that source, including records from the start of the tax year. If you are not sure you will stay under, gov.uk advises using full categories.
Keeping the 14 categories anyway means your totals are ready for your tax return, and you can work out your profit with the self employed tax calculator.
Log every cost under these headings
The Sole Trader MTD Record Book costs £8.99 as a one-off download. Its expenses log uses these 14 categories, with a column for the part that is not allowable, and adds them up for each quarterly update.
Get the record book, £8.99Questions people ask
Which expenses can a sole trader claim?
Costs that relate to the business, such as office costs, travel, staff, stock, insurance and bank charges, marketing, subscriptions and training. Money you take from the business for personal use is not an allowable expense. If you are unsure whether a cost is allowable, gov.uk advises contacting HMRC.
Can I claim part of a bill that covers business and personal use?
Yes, claim only the business share. gov.uk's example is a £200 phone bill that includes £70 of business calls: you claim £70.
Do I need to sort expenses into categories for Making Tax Digital updates?
Not if your turnover from a source is under £90,000. Sole traders can then record each transaction as just income or an expense. At £90,000 or more you need full categories for that source.
Can I use flat rates instead of working out actual costs?
For some costs, yes. In 2026/27 the car and van rate is 55p a mile for the first 10,000 business miles, then 25p. For working from home, the monthly flat rates are £10, £18 or £26 for 25 to 50, 51 to 100, and 101 or more hours.
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General information, not tax advice. If you are unsure whether a cost is allowable, check with HMRC.
Checked against gov.uk on 7 November 2026. Sources: gov.uk, Expenses if you are self-employed; HMRC notes to the Self Assessment self-employment (full) pages (SA103F); gov.uk, Making Tax Digital for Income Tax.