What business expenses can I claim?

“Can I claim this as an expense?”

It’s one of the most searched questions by business owners - and one of the most misunderstood.

Some people underclaim and pay more tax than they need to. Others overclaim and don’t realise there’s a problem until HMRC gets involved.

This article explains what business expenses you can claim, what you can’t, and why getting this right matters more as your business grows.

What Is a Claimable Business Expense?

In simple terms, a business expense must be:

“Wholly and exclusively for business purposes.”

That phrase comes directly from HMRC - and it’s the rule everything else hangs off.

If an expense is:

• Necessary for running your business
• Incurred because of your business
• Not primarily personal

…it’s usually allowable.

If there’s personal use mixed in, things get more complicated.

Common Allowable Business Expenses

Most UK businesses can usually claim expenses such as:

Office & Admin

• Office supplies
• Postage and stationery
• Business phone contracts
• Printing and software

Software & Subscriptions

• Accounting software (e.g. Xero)
• Email, CRM, project management tools
• Design, marketing, or editing software
• Online platforms used for work

Professional Services

• Bookkeeping and accounting fees
• Legal advice
• Consultancy
• Business coaching (where appropriate)

Marketing & Sales

• Advertising
• Website hosting
• Branding and design
• Email marketing tools

Travel (Business Use Only)

• Mileage for business journeys
• Parking fees
• Public transport for business trips
• Accommodation for business travel

Home Office Expenses

If you work from home, you may be able to claim:

• A portion of electricity and heating
• Internet costs
• Rent or mortgage interest (portion only)
• Council tax (portion only)

How this is calculated depends on:

• How much of your home is used for work
• How often it’s used
• Your business structure

This is an area where many businesses either claim nothing and overpay tax, or claim too much and risk HMRC issues.

Expenses That Often Cause Confusion

These are some of the most searched and most problematic expense categories:

Clothing

Generally not allowable, unless it’s:

• Protective clothing
• Uniform with branding
• Required for safety or identification

Everyday clothing, even if worn for work, is usually personal.

Meals

• Day-to-day meals are usually not allowable.
• Business travel meals may be allowable in specific circumstances.

Training & Courses

Often allowable if they relate to existing skills, not new careers.

Personal Devices

If used partly for business, only the business portion can usually be claimed.

Why Expenses Matter More as Your Business Grows

As turnover increases:

• HMRC scrutiny increases
• VAT implications become more important
• Errors become more expensive
• Records need to stand up to inspection

Poor expense handling can lead to:

• Overpaid tax
• Incorrect VAT returns
• Director’s Loan Account issues
• Time-consuming clean-up work later

This is especially important for limited companies and growing businesses.

What Good Bookkeeping Does With Expenses

Good bookkeeping isn’t about squeezing every possible claim.

It’s about:

• Correct categorisation
• Clear audit trails
• Consistency
• Compliance
• Confidence

When expenses are handled properly:

• Tax bills are predictable
• Reports are accurate
• Decisions are based on reality
• HMRC queries are far less stressful

A Word of Caution

If you ever find yourself thinking: “Everyone claims this — it’ll be fine.” That’s usually the point to pause.

What matters isn’t what others do, it’s what your records can justify.

Final Thought

Claiming business expenses isn’t about pushing boundaries. It’s about understanding the rules and applying them properly.

Done right, it saves tax. Done wrong, it costs time, money, and peace of mind.