What tax deductibles can sole traders claim?

Melanie Richardson


One of the most common questions that sole traders ask when tax returns are due is what costs they can deduct from their tax to reduce tax due. The easy answer is that they can claim anything that is wholly and exclusively for carrying out their trade. This includes stock, materials and payroll, but the system is more complicated than this too. Other tax deductibles include rent mileage and training, but these cannot always be claimed in full. Here we explore the top tax deductibles for sole traders:


Housing costs


If you work from home as a sole trader then you can claim a portion of some expenses and bills for doing so. This can include mortgage interest, utility bills and even home insurance. You can claim on the basis of the number of rooms and the time that these rooms are used for if they are exclusively for business use.


Phone and internet


You can also claim a portion of your phone, line rental and internet costs as tax deductibles. The key is to log the calls and internet use that relates to your business to support your claim.




You can claim business miles as tax deductible within certain parameters. Mileage is worked out at 45p per mile for the first 10,000 and 25p per mile over and above this. Business mileage by bike can even be claimed at 20p per mile! Mileage to and from your normal place of work is not, however, deductible so you cannot claim for your normal journey to and from the office.


Website and marketing


Website hosting, marketing and advertising costs are all tax deductible. Even a PR consultant cost can be counted as a tax deductible, so the cost of these services can actually be greatly reduced for sole traders. The main exception is that business entertainment does not apply as a tax deductible and should not be claimed.




Personal improvement and ongoing training for yourself or someone working for you is tax deductible too.


Professional fees


Professional fees are also tax deductible so the cost of advice from a lawyer or accountant can be claimed on your tax return.

If you'd like to find out more about what you claim for, or need help with your self assessment tax return, speak to our Business Services Partner Robert using his contact details below:


Email: robertw@swindellsaccounting.co.uk

Tel: 01825 763366

Robert east sussex accountants

Business Services Partner



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