Self-Employed Expenses Planner UK 2026

Enter your gross turnover and annual allowable expenses below to see your taxable profit, estimated tax saving per category, and HMRC mileage claim for 2026/27. Based on current HMRC rules: personal allowance £12,570, Class 2 NI abolished April 2024.

Office Costs

Travel (Actual Costs)

Mileage Allowance (HMRC Rate)

Use instead of actual travel costs — not both.

Clothing

Staff Costs

Premises

Use of Home for Work

Marketing & Advertising

Professional Fees

Financial Charges

Training

Other Allowable Expenses

£0

Total Allowable Expenses

£0
Gross Turnover
£0
Taxable Profit
£0
Tax Saving from Expenses
£0
Estimated Income Tax
£0
Class 4 NI
£0
Mileage Claim

Tax Calculation Breakdown

Gross Turnover £0
Total Allowable Expenses −£0
Taxable Profit £0
Personal Allowance −£12,570
Income Subject to Tax £0
Income Tax £0
Class 4 NI (6% / 2%) £0
Total Tax + NI £0

Top 3 Largest Expense Categories

    Class 2 NI abolished April 2024 — sole traders no longer pay Class 2 NI from 2024/25 onwards. State Pension entitlement is preserved through a NI credit for profits above £12,570. Only Class 4 NI applies.
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    What Counts as an Allowable Business Expense for UK Sole Traders?

    As a UK sole trader registered for Self Assessment, you can deduct allowable business expenses from your gross turnover before calculating your taxable profit. HMRC's golden rule is that the expense must be wholly and exclusively for business purposes. Day-to-day running costs qualify; one-off capital purchases (computers, machinery) are claimed separately through capital allowances. Keeping accurate digital records throughout the year — receipts, invoices, mileage logs — ensures every legitimate deduction is captured before your Self Assessment deadline.

    The 2026/27 personal allowance remains frozen at £12,570. Basic rate taxpayers pay 20% income tax on profits between £12,571 and £50,270; higher rate payers face 40% on income from £50,271 to £125,140; and the additional rate of 45% applies above £125,140. Class 2 National Insurance was abolished in April 2024. Class 4 NI continues at 6% on profits between £12,570 and £50,270, and 2% above £50,270. Every pound of allowable expenses reduces your taxable profit and therefore your income tax and Class 4 NI bill simultaneously.

    How Your Tax Saving Is Calculated

    Taxable Profit = Gross Turnover − Total Allowable Expenses

    Income Subject to Tax = Taxable Profit − Personal Allowance (£12,570)

    Income Tax = Income Subject to Tax × Marginal Rate (20% / 40% / 45%)

    Class 4 NI = 6% on £12,570–£50,270 + 2% above £50,270

    Mileage Claim (car) = Miles (≤10,000) × £0.45 + Miles (>10,000) × £0.25

    Home Office, Mileage, and the Simplified Expenses Rules

    HMRC's simplified expenses scheme lets sole traders use flat rates for certain costs rather than working out exact proportions. For working from home, the flat rate is based on monthly hours: 25–50 hrs/month earns £10/month (£120/year), 51–100 hrs/month earns £18/month (£216/year), and 101+ hrs/month earns £26/month (£312/year). If your actual home costs (heating, electricity, broadband) allocated to business use exceed those flat rates, the actual cost method gives a larger deduction — but requires keeping detailed bills and a proportionate usage calculation.

    For vehicle costs, the mileage allowance is the simplest approach. Cars and vans attract 45p per mile for the first 10,000 business miles each tax year and 25p thereafter. Motorcycles are 24p per mile; bicycles are 20p. These rates cover fuel, insurance, servicing, road tax, and depreciation in one figure. You cannot claim both the mileage rate and actual vehicle costs for the same vehicle — choose one method at the start of ownership and stick with it.

    Tips for Maximising Your Self Assessment Expense Claims

    Many sole traders under-claim expenses simply because they do not know what qualifies. Professional fees — including your accountant's bill — are fully deductible. Relevant training courses that improve skills directly used in your existing business qualify; courses that set you up for a new trade do not. Business insurance (professional indemnity, public liability) is deductible, as are bank charges on a dedicated business account. Subscriptions to trade journals, professional bodies, and software tools used exclusively for work all count. Marketing costs — including website hosting, domain names, social media advertising, and printed materials — are straightforwardly deductible as revenue expenses.

    One common mistake is claiming capital purchases (a new laptop, a camera) as revenue expenses. These should go through capital allowances — typically the Annual Investment Allowance which allows 100% deduction in the year of purchase up to £1 million. If you are unsure whether an expense is capital or revenue, the HMRC Business Income Manual provides detailed guidance. Using an accountant to review your expense claims for the first year typically pays for itself many times over in legitimate deductions identified.

    Last updated: March 2026. Based on HMRC 2026/27 rates (personal allowance £12,570, Class 4 NI 6%/2%). This tool provides estimates for planning purposes only. Consult a qualified accountant for personalised tax advice.