The short version
- Expenses must be "wholly and exclusively" for the business. Split anything you also use personally.
- Tools, protective clothing, van costs, insurance, phone and accountant's fees usually count.
- For a van or car, claim either actual costs or HMRC's mileage rate — not both. The rate is 55p a mile for the first 10,000 miles in 2026/27 (45p in 2025/26).
- Everyday clothing, fines, and travel to a fixed workplace you go to every day don't count.
- Each £100 of costs saves a basic-rate taxpayer about £26 in tax and NI.
The basic rule
You can claim a cost if it's wholly and exclusively for your business. If something is used partly for work and partly personally — your phone, say — you can claim the business part.
Expenses aren't money back from HMRC pound for pound. They reduce your profit, and tax is charged on profit. For most subbies paying 20% Income Tax and 6% Class 4 NI, every £100 of allowable costs saves about £26. For someone over the higher-rate threshold, it's about £42 (40% + 2%).
What tradespeople can usually claim
| Expense | Allowable? | Notes |
|---|---|---|
| Hand tools and power tools | Yes | Small tools as an expense; expensive kit may need capital allowances (still claimed on your return) |
| Protective clothing and PPE | Yes | Boots, hi-vis, hard hat, gloves, goggles, ear defenders |
| Uniform with your logo on | Yes | Branded workwear counts; plain everyday clothes don't |
| Van or vehicle | Yes | Actual costs or mileage rate — not both |
| Public transport and parking | Yes | For business journeys. Not parking fines |
| Phone and broadband | Business share | Work out a sensible percentage |
| Public liability and tool insurance | Yes | Not personal life insurance |
| Accountant or bookkeeping fees | Yes | Including software you use for your accounts |
| Training to keep skills up to date | Usually | CSCS renewals, refresher courses. Not new skills for a different trade |
| Trade or professional body subscriptions | Usually | If the body is linked to your trade |
| Bank charges on a business account | Yes | Interest on business loans too (limits can apply) |
| Working from home | Yes | Flat rate, or a share of actual costs |
Vans and mileage
This is usually the biggest cost for a tradesperson, so get it right. You have two choices for each vehicle:
1. Simplified mileage rate. Keep a log of business miles and multiply by HMRC's flat rate. It covers fuel, insurance, servicing, repairs, tax and depreciation, so you claim none of those separately.
| Tax year | Cars and vans: first 10,000 miles | Over 10,000 miles | Motorcycles |
|---|---|---|---|
| 2025/26 | 45p | 25p | 24p |
| 2026/27 | 55p | 25p | 24p |
2. Actual costs. Add up fuel, insurance, repairs, servicing, road tax and finance interest, take off the personal-use share, and claim the business part. You claim the cost of the van itself through capital allowances.
Mileage is simpler and often works out well for older or cheaper vans. Actual costs can be better for an expensive new van that does lots of business miles. Once you've used the mileage rate for a vehicle, you must keep using it until you stop using that vehicle.
Worked example
Lee drives 12,000 business miles in 2026/27.
- First 10,000 miles × 55p = £5,500
- Next 2,000 miles × 25p = £500
- Mileage claim: £6,000
He can't also claim the diesel, insurance or MOT for the van. But he can still claim tolls and parking for business trips.
The CIS calculator works out your mileage claim at the right rate for the year, and adds it to your other costs.
Travel: what counts
Travel costs are where people most often go wrong.
- Allowed: travel from home to the different sites you work at, if your home is your business base; trips to merchants to pick up materials; travel between sites.
- Not allowed: travel to a fixed place of business you go to every day, such as your own workshop or yard; ordinary personal journeys.
If you work at one site day after day for a long stretch, it can start to look like a normal commute. If that's you, take advice before claiming.
Working from home
If you do your paperwork, quoting and invoicing at home, you can claim a share of household costs. The simplest way is HMRC's flat rate, based on the hours you work at home each month:
| Hours of business use a month | Flat rate a month |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
Most tradespeople fall in the first band: about £120 a year.
What you can't claim
- Everyday clothing, even if you only wear it for work.
- Fines and penalties, including parking and speeding tickets.
- Your own wages or drawings. Money you take out of the business isn't a cost.
- Lunches and food on a normal working day near your usual area.
- Entertaining clients or customers.
- The personal share of anything you also use privately.
Materials
If you buy materials and charge them on to the contractor, they're part of your turnover and a cost, so they cancel out. Enter them in both places on your return. CIS should never have been taken from them, so check your statements — our CIS deductions guide explains why.
The £1,000 trading allowance
Instead of claiming actual expenses, you can claim a flat £1,000 trading allowance. You can't do both. It's only worth it if your real costs for the year are under £1,000, which is rare for anyone with a van.
Keep the evidence
You don't send receipts to HMRC, but you must be able to back up every figure if asked. Keep receipts, bank statements and a mileage log for at least 5 years after the 31 January deadline for that year. A photo of each receipt on your phone, saved in a folder for each tax year, is enough. See what CIS records to keep.
Questions people ask
Can I claim for work boots and hi-vis?
Yes. Protective clothing and safety gear you need for the job, such as boots, hi-vis, hard hats, gloves and goggles, are allowable. Everyday clothes are not, even if you only wear them for work.
Can I claim mileage and fuel?
Not for the same vehicle. Either claim HMRC's flat mileage rate, which covers fuel, insurance, repairs and wear, or claim the actual running costs plus capital allowances. Once you use the mileage rate for a vehicle, you must keep using it for as long as you use that vehicle.
Can I claim travel to site?
Usually, if you run your business from home and travel to different sites. Travel to a fixed place of business you go to every day, like your own yard or unit, isn't allowable. If you work at one site for a long time, check the rules or ask an accountant.
Can I claim my CSCS card or training?
Training that keeps your existing skills and cards up to date is normally allowable. Courses that give you a new skill for a different line of work are not.
Do I need receipts for every expense?
You need records that back up your figures, such as receipts, invoices or bank statements, and a mileage log if you claim mileage. You don't send them to HMRC, but you must keep them for at least 5 years after the 31 January deadline.
What if my costs are very low?
You can claim the £1,000 trading allowance instead of actual expenses. It's worth using only if your real costs for the year are under £1,000.
Sources
Checked against GOV.UK on 21 October 2026. Rates and rules change, usually from 6 April, so we re-check every guide at least once a year.