Track expenses without the shoebox
Unclaimed expenses are the most common way UK sole traders overpay tax, and the reason is almost never that they did not know the rule. It is that the receipt was gone by the time they filed.
Capture where the cost happens
A receipt captured at the till is a receipt you still have in January.
- Photograph it, forward it by email, or send it on WhatsApp
- Vendor, amount, VAT and date read automatically and held for confirmation
- Bank transactions matched against what you have already recorded
- Recurring costs entered once and raised on schedule
Mixed use, handled honestly
Most contested expenses are not fabricated, they are unapportioned. A phone used for work and personal calls, a car doing both, a room that is an office three days a week. The rule is that you claim the business proportion, and the thing that makes a claim defensible is a basis you wrote down at the time rather than a round number invented later.
What you cannot claim
Some costs feel business-related and are never deductible. Client entertaining is the main one. Ordinary commuting to a permanent workplace is another. Software that lets you claim anything is not doing you a favour, because the enquiry lands on you rather than on it.
Common questions
What counts as an allowable expense?
A cost incurred wholly and exclusively for the business. Where there is a private element, you claim the business proportion. GOV.UK publishes the categories, and the boundaries matter more than the list: the same cost can be allowable for one trade and not another.
Do I need to keep the receipt?
Yes. A bank line proves money left your account, not what it was for or how much VAT it carried. Keep the receipt for the period HMRC requires, which differs for individuals and companies.
Can I claim things I bought before I started trading?
Pre-trading expenses can often be claimed as if incurred on your first day of trading, within a time limit and subject to the same wholly-and-exclusively test. It is a commonly missed relief when setting up.
Last updated 2026-04-25. Thresholds, rates and allowances are indexed or reset at fiscal events and are deliberately not quoted here; check GOV.UK for current amounts.