These are the standard HMRC allowable expense categories for self-employed businesses in the UK, taken from the Self Assessment short form (SA103S). Below are examples of what each category covers.
Note: These categories apply to the UK tax system. If you use 1tap outside the UK, check your local tax authority's guidance instead.
Allowable expense categories
HMRC groups self-employed business expenses into 9 categories.
Cost of goods bought for resale or use
This covers stock and raw materials used for goods you sell, such as food or materials.
Accountancy, legal, and other professional fees
This covers fees paid to a lawyer or accountant. It doesn't cover the legal costs of buying property or large equipment, settling tax disputes, or fines for breaking the law.
Wages, salaries, and other staff costs
This covers the cost of hiring staff. It doesn't cover your own wages, drawings, pension payments, or National Insurance contributions.
Car, van, and travel expenses
This covers business travel costs like fuel, vehicle hire, insurance, repairs, and hotel rooms. It doesn't cover non-business motoring costs, fines, buying a vehicle, home-to-business travel, or meals unless you're on an overnight business trip.
Phone, stationery, and other office costs
This covers your phone, internet, postage, stationery, and printing. It doesn't cover private use of these items, or new equipment such as a phone or computer if you use traditional accounting.
Repairs and renewals for property and equipment
This covers repairing your business premises or renewing small tools. It doesn't cover repairs to non-business areas, or cosmetic improvements to a premises or equipment.
Interest, bank, and credit card charges
This covers charges your bank makes for running your business.
Rent, rates, power, and insurance costs
This covers rent, business rates, water rates, electricity, and heating for a separate business premises or a section of your home. It doesn't cover private areas of the premises, a flat-rate amount if you live on the premises, or the cost of buying the premises.
Other allowable expenses
This covers costs like trade or professional journal subscriptions, and other business running costs not listed elsewhere. It doesn't cover payments to clubs, political parties, or charities, or the cost of ordinary clothing.
Where to find more information
For the full list of allowable expenses and current thresholds, go to the Self Assessment: self-employment (short) form on GOV.UK.