Track mileage automatically
Get started
14 July 2023 - 2 min read

Business expenses

Business expenses are any expenses you accrue to run your business. HMRC allows the deduction of some of these expenses, so long as they are considered allowable. Deducting business expenses will help you recover the expenditures by lowering your taxable profit. You cannot deduct any personal expenses, and if an expense is partly for business and partly for private use, you will only be able to deduct the expense relating to the business portion of its use.

Allowable business expenses

Allowable business expenses are the expenses you can claim according to HMRC rules. Here is a common business expenses list in the UK:

  • Office costs such as rent, utilities, stationery, insurance, security
  • Financial costs such as accounting, legal or banking fees
  • Employee wages, bonuses, commissions, and any eligible employee expenses you have reimbursed
  • Travel costs such as business-related travel, vehicle maintenance and driving for business purposes (see our guide on mileage claims for the self-employed)
  • Clothing expenses such as uniforms
  • Marketing and advertising
  • Training courses
  • Subcontractor costs
  • Raw materials or stock you sell on.

While this list is not exhaustive, it should give you a good idea of the business costs you are allowed to claim.

Business expenses you can claim as capital allowances

You will be able to claim a capital allowance on purchases you will keep to utilise for your business, such as vehicles, machinery or equipment if you use traditional accounting.

Note that if you use cash basis accounting, you will be able to claim a capital allowance on a purchased car, but other items should be deducted as allowable business expenses.


Mileage tracking made easy

Trusted by millions of drivers

Automate your mileage log Automate your mileage log

Claiming business expenses from HMRC

If you use your tax-free trading allowance of £1,000, you will not be able to claim any allowable or capital expenses.

You cannot claim any private purchases on the tax return. Note that if you run your own limited liability company, you will have to declare any items you have made use of personally as a company benefit.

As a self-employed individual, you can choose to simplify your business expenses claim by using the simplified expenses method, where there is a flat rate for any allowable expense, rather than keeping receipts and doing extensive calculations on your business-related expenses. You can find more about simplified expenses on HMRC’s website.


Business expenses are any expenses you accrue to run your business and earn income. You are able to claim deductions for all allowable business expenses, including office rent, utilities, business travel, admin fees and more.
You can claim business expenses such as payroll, office costs, advertising, travel, supplies, equipment and more. All costs should be solely expenses for business and not personal purposes.

How to automate your mileage logbook

Manually filling out your logbook can get tedious - see how to automatically track trips for your mileage reimbursement or deductions.
Automate your logbook
Track and report your mileage with ease. Save time and effort with Driversnote.
Get started

Related posts

Per diem allowance
Per diem allowance

Learn what a per diem allowance is, how it works in the UK and how much you can receive according to HMRC.

11 April 2024 - 2 min read
HMRC Mileage Guide
HMRC Mileage Guide

Welcome to our guide on mileage claims and reimbursement in the UK. This guide will walk you through the rules that apply to your situation.

22 March 2024 - 5 min read
Electric car mileage rates 2024
Electric car mileage rates 2024

See the current HMRC rates for claiming mileage on electric vehicles, whether you drive a private or company car for business.

19 April 2024 - 2 min read