UK · Free · No sign-up

Tax deductions by occupation in the UK

What the work costs is much the same wherever you do it. How you claim it is not — so each guide below pairs the spending with the rules that apply in the UK. You report through a Self Assessment tax return.

Income tax in the UK

The Personal Allowance is £12,570 before income tax applies. There is also a £1,000 trading allowance — if your gross self-employed income is under it you generally have nothing to report, and if you use the allowance you claim it instead of your actual expenses, not as well as.

VAT in the UK

Rate
20%
Registration
GBP 90,000 turnover/yr
Returns
Quarterly (Making Tax Digital)

This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with HMRC or a registered tax adviser, and keep records to back up every claim.

How the UK treats the big three

Vehicle and travel

Simplified expenses let you claim a flat rate per business mile instead of actual running costs — 55p per mile for the first 10,000 miles and 25p after that, following the increase that took effect from 6 April 2026. Once you use the flat rate for a vehicle you must keep using it for that vehicle.

Home workspace

You can use HMRC simplified expenses — a monthly flat rate based on the hours you work from home — or apportion actual costs. The flat rate is simpler; actual costs can be worth more if you work from home most of the week.

Equipment and higher-cost gear

Equipment is usually claimed through capital allowances, and the Annual Investment Allowance often lets you claim the full cost in the year of purchase.

Worth knowing in the UK

Making Tax Digital for Income Tax is arriving in phases from April 2026 for sole traders above the qualifying income threshold, which means quarterly digital updates rather than one annual return.

Self-employed tax in the UK — common questions

Do I need to file a Self Assessment return?

Generally yes once your gross self-employed income passes the £1,000 trading allowance. Register with HMRC, then file after the tax year ends on 5 April — the online deadline is 31 January. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with HMRC or a registered tax adviser, and keep records to back up every claim.

Should I use the £1,000 trading allowance or claim expenses?

It is one or the other, not both. If your expenses for the year come to less than £1,000 the allowance usually leaves you better off; once your gear, software and other costs exceed it, claiming actual expenses does. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with HMRC or a registered tax adviser, and keep records to back up every claim.

Let Fin surface these for you

Connect your bank and Fin scans every transaction for claimable expenses as they land — so at tax time the deductions are already found, not reconstructed. Free to start, no card needed.

Get AI2Fin free →