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Tax Deductible Expenses for Sole Traders

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Tax deductible expenses for sole traders are allowable expenses incurred in running a business.

They reduce the amount of tax paid by sole traders by reducing their profits subject to tax.

To claim for expenses, please make sure you keep accurate records, and keep these records for 6 years.

Much the same as limited companies, sole traders can claim expenses incurred from running your business.  These expenses must be wholly and exclusively for business use. Where there is a personal and a business benefit, you cannot claim the expenses.

Examples of some expenses that you could be able to claim as a sole trader are:

  • Travel and subsistence costs
  • Mileage to and from a temporary place of work
  • Telephone and internet costs (if these are the same contracts as your personal use, it needs to be apportioned correctly)
  • Professional memberships that are directly relevant to the work that you do (see HMRC'S list of approved professional bodies here)
  • Use of home as office
  • Some training expenses
  • Insurances and bank charges
  • Accountancy and Professional fees
  • Office Equipment and tools

This is just a brief overview of some tax deductible expenses you can claim as a sole trader.

If you have any doubt at all about expenses you are claiming, or want to claim, please contact a professional.

If you are just starting out, rather than using accounting software, we have developed expense tracking spreadsheets that we make available to our clients.

For advice on expenses in your particular situation, and for access to helpful resources and advice about recording expenses, please contact us today.







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