Trade Business Expenses You Can Claim on Tax (UK 2026 Guide)

If you are a UK tradesperson, you are almost certainly paying more tax than you need to. Not because the rules are unfair, but because most sole traders and small trade businesses miss legitimate expenses that they are entitled to claim.

This guide walks through every expense category UK tradespeople can claim against tax in 2026. Written for plumbers, electricians, builders, roofers, gas engineers and any other trade running their own business - whether you are a sole trader or a limited company.

Disclaimer: this is a guide, not personal tax advice. For specific situations, always check with an accountant or HMRC directly.

How expense claims work in the UK

When you are self-employed (sole trader) or running a limited company, you only pay tax on your profit - not your turnover. Profit is what is left after you subtract your allowable business expenses from your revenue.

So if you turned over £80,000 and had £30,000 in legitimate business expenses, you pay tax on £50,000 - not £80,000.

The rule HMRC uses is "wholly and exclusively for business". If something is bought for the business and only used by the business, it is claimable. If it is bought for personal use and also used occasionally for work, you typically claim the business-use percentage.

Tools and equipment

The most obvious category - and the one most tradesmen claim correctly. But there are still gaps.

Hand tools

Spanners, screwdrivers, pipe wrenches, levels, hammers, chisels, multimeters. All fully claimable. Keep the receipt every time.

Power tools and machinery

Drills, grinders, breakers, compressors, generators. If under £1,000 or so, claim as an expense in the year of purchase. Bigger kit (pipe benders, mini diggers, plant) may need to go through capital allowances - check with your accountant.

Tool replacements and repairs

When a drill burns out, when you snap a spanner, when your multimeter needs recalibrating - all claimable. Even the WD-40 to keep them working.

PPE and safety equipment

Hard hats, gloves, safety boots, knee pads, harnesses, goggles, dust masks, ear defenders, FFP3 respirators. All allowable. Often forgotten.

Test equipment and calibration

For electricians, gas engineers, HVAC technicians: PAT testers, gas analysers, multimeters, leak detectors. Both the purchase and the annual calibration costs are claimable.

Van, fuel and vehicle costs

This is where the biggest savings are - and where most tradesmen get it slightly wrong.

Two methods - pick one and stick with it

Method 1: Simplified mileage rate

Claim 45p per business mile for the first 10,000 miles per tax year, then 25p per mile after that. Track your mileage with an app or notebook. Cannot also claim fuel, MOT, insurance, repairs etc on top.

Good for: people who use one vehicle for both business and personal, or do under 10,000 business miles a year.

Method 2: Actual costs

Claim the business-use percentage of: fuel, MOT, servicing, repairs, insurance, road tax, van lease or HP payments, breakdown cover, tyres, parking, congestion charge.

If your van is 100% business use (no personal use at all), claim 100% of everything. If it is 80% business / 20% personal, claim 80%.

Good for: people with a dedicated work van and high vehicle costs.

Often-missed vehicle costs

• Parking fees (yard parking, customer site parking, even tickets if it was genuinely a work delivery)
• Congestion charge and ULEZ fees
• Van washing
• Vehicle tracking software
• Sat-nav subscription
• Roof rack, ladder rack, internal racking
• Toolbox in the back of the van
• Van signwriting and graphics

Buying a new van

If you buy a van outright, claim the full cost as an Annual Investment Allowance (AIA) - up to £1,000,000 per year. This means buying a £25,000 van fully reduces your taxable profit by £25,000 in that tax year.

Electric vans get even better treatment in 2026 with 100% first-year allowances. Worth checking with an accountant before buying.

Workwear

Tradesmen often miss this one because they think clothing is not claimable. It is - if it is workwear, not regular clothing.

Claimable

• Branded workwear with your company logo or name
• Safety boots and steel-toe footwear
• High-vis vests and jackets
• Overalls, work trousers (Dickies, Snickers, etc)
• Protective gloves
• Wet weather gear used for outdoor work
• Uniforms with company branding

Not claimable

• Generic jeans, t-shirts, jumpers (even if you only wear them for work)
• Regular shoes
• Underwear and socks
• Anything you would also wear in normal life

Workwear laundry

You can claim a flat rate of £60 per year for cleaning workwear without receipts. If you spend more (industrial uniform service for a team, for example), claim the actual cost with receipts.

Phone, internet and tech

Mobile phone

If you have a separate work phone, claim 100% of the cost (handset and contract).

If you use one phone for personal and work, claim the business-use percentage of the bill. Most tradesmen are 70-90% business use - keep a record of how you calculated it.

Home broadband and electricity (working-from-home)

If you do quoting, invoicing, ordering and admin from home, you can claim a working-from-home expense. Two methods:

Simplified flat rate: £6 per week (£312 per year). No receipts needed.

Actual costs: Calculate the percentage of your home used for business (typically 10-20% of utility bills). More effort, often barely more money.

Tech and software

• Laptop or tablet (business-use %)
• Trade business software (VioTrade, Tradify, Xero, etc) - 100% claimable
• Accounting software
• Cloud storage subscriptions
• Anti-virus software
• Domain name and website hosting
• Email service

VioTrade's plans start at £14.99/month and are 100% claimable as a business expense.

Insurance

All business insurance is claimable. Check you have these in place - they cost less than people think and the lack of cover can wipe out a business.

• Public liability insurance
• Employers' liability insurance (legal requirement if you have any staff or subcontractors)
• Professional indemnity insurance
• Tools insurance
• Van insurance (business use)
• Income protection insurance (for sole traders)

For the full picture on what cover you need, see our guide on what insurance do tradesmen need in the UK.

Training and certifications

Anything that maintains your existing professional qualifications is claimable. Anything that gains you a new skill outside your existing field may not be (HMRC views that as personal development).

Claimable

• Annual Gas Safe registration renewal
• NICEIC, NAPIT, ECA membership and renewals
• F-Gas certification renewals
• CSCS card renewal
• First aid at work renewal
• IPAF, PASMA, asbestos awareness renewals
• Refresher courses in your existing trade
• Building Regulations updates
• Health and safety courses
• Manufacturer training (boiler-specific courses, etc)

Borderline

• A new qualification in a related trade (e.g., a plumber getting electrical training). Often claimable if you can show it supports your existing business.

Not claimable

• A completely new career qualification (e.g., a plumber doing a chef's course)

Marketing and customer acquisition

All money spent attracting customers is claimable.

• Website design and hosting
• Google Ads, Facebook Ads, Bing Ads
• Checkatrade, MyBuilder, Trustatrader, Yell subscriptions
• Business cards, leaflets, flyers
• Van signwriting and vehicle graphics
• Branded workwear (with logo)
• Photography of completed jobs
• Branded mugs, pens, fridge magnets you give to customers
• Social media advertising
• Sponsorship of local sports teams or events

Office and admin costs

Even if you do not have a physical office, plenty of admin costs are claimable.

• Stationery, printer, ink, paper
• Postage and packaging
• Accountant or bookkeeper fees
• Bank charges on a business account
• Card payment fees (Stripe, SumUp, iZettle)
• Subscriptions to trade publications
• Membership of trade associations (Federation of Master Builders, etc)
• Mobile phone (work portion)

Subcontractor and labour costs

If you pay other people to help you on jobs, their cost is fully claimable.

• Subcontractor invoices
• CIS payments to subcontractors (you also need to handle CIS deductions properly - check with HMRC)
• Apprentice wages
• Casual labour

Keep proper records. HMRC checks these closely.

Materials, parts and consumables

The single biggest expense for most trades. Every receipt counts.

• All parts and materials used on jobs
• Bulk purchases of common materials (copper pipe, cable, fixings, sealants)
• Consumables (silicone, flux, solder, drill bits, blades)
• Waste disposal fees and skip hire
• Delivery charges on materials
• Plant and tool hire

A good practice: photograph receipts the moment you get them, or use an app that does it for you. VioTrade's AI receipt scanning reads the supplier, total, VAT and date from a photo and logs it against the right job automatically. Saves hours and stops receipts going missing.

Things you cannot claim

Some categories are tempting but not allowable.

• Personal clothes (non-workwear)
• Personal meals
• Lunch at the cafe when on site (you would have eaten anyway)
• Fines and parking tickets (even on a work trip)
• Personal entertainment
• Gifts to customers over £50 in value
• Client entertainment (mostly disallowed)
• Personal pension contributions (claimed differently, through tax return)
• Anything for personal use

Records you need to keep

HMRC can ask for evidence up to 6 years after the tax year ends. Keep:

• Every receipt (photo or paper)
• Bank statements (business account)
• Mileage log if claiming actual vehicle costs
• Records of business-use percentage calculations (phone, home, etc)
• Invoices issued and received

Use accounting software or trade-specific software to keep this organised digitally. A shoebox of receipts is fine if you are tiny - it stops being fine fast.

Sole trader vs limited company - does it matter?

Both can claim the same categories of expenses. The mechanics differ slightly:

• Sole traders claim expenses on their Self Assessment tax return (form SA103S or SA103F).
• Limited companies claim expenses in their annual accounts and Corporation Tax return.

Limited companies have a few extras:

• Directors can claim certain things employees can (mileage at HMRC rates, working from home allowances)
• Some pension contributions are more tax-efficient through the company
• Dividends are not subject to NI

If you are unsure which structure suits you, see our guide on sole trader vs limited company for tradesmen.

Frequently asked questions

Do I need receipts for every expense?

Yes, ideally. HMRC accepts photos of receipts. Some expenses (like the £60/year workwear cleaning flat rate or £312/year working-from-home flat rate) can be claimed without receipts as standard allowances.

What if I lost a receipt?

For small one-off expenses, your bank or card statement showing the payment is usually enough. For larger purchases, try to get a duplicate from the supplier. Never invent or estimate - HMRC penalties for false claims are severe.

Can I claim expenses from before I started the business?

Yes - "pre-trading expenses". Anything genuinely incurred in setting up the business in the 7 years before you started trading can be claimed as if it was incurred on day one of trading. Tools you bought, training you paid for, even the cost of registering for self-employment.

What about working-from-home expenses if I just do invoicing at the kitchen table?

You can still claim the £6/week (£312/year) simplified flat rate without any calculation or receipts. If you have a dedicated office space at home that you use solely for business, you may be able to claim a higher portion - but this can affect Capital Gains Tax if you ever sell your home, so most sole traders stick with the flat rate.

How do I track expenses without going mad?

The simplest approach: every receipt gets photographed the moment you get it. Use an app that reads receipts automatically and links them to your accounts. VioTrade's expense tracking with AI receipt scanning handles this automatically and works on iPhone and Android.

What if I am VAT registered?

You can also reclaim the VAT you paid on most business expenses. Same rules about "wholly and exclusively for business". Track the VAT element of every claimable expense and reclaim it on your VAT return.

Do I need an accountant?

Not legally - but for most trades the cost of an accountant (typically £400-1,200/year for a sole trader) is paid back many times over in tax saved on expenses you would have missed.

The expense habit that saves real money

The tradesmen who pay the right amount of tax (rather than more than they should) do one thing: they capture every receipt the moment they buy something. Not at the end of the month. Not at year-end when they panic-sort a glovebox of crumpled paper.

Build that habit and over a year you will likely save more than your software costs many times over.

Try VioTrade free for 14 days - includes AI receipt scanning that reads the VAT, supplier and total from a photo and logs everything against the right job. No credit card required.