10 Hidden Allowable Business Expenses UK Entrepreneurs Often Miss

October 17, 2025

Running a business in the UK means every pound counts — and so does every allowable expense. Yet, thousands of entrepreneurs miss out on legitimate business expenses tax relief each year simply because they don’t know what they can claim.

To help you save more and pay only what you owe, here are the top 10 allowable business expenses UK business owners often overlook — with practical examples and a few important warnings.

1. Home Office Costs

If you work from home — even part-time — you can claim a portion of your household bills.
Examples:

• Electricity, gas, and water

• Internet and phone bills

• Rent or mortgage interest

Tip: Keep records showing how much of your home is used for business. HMRC allows a simplified flat rate, but accurate calculations can often save more.

HMRC provides clear guidance on working from home expenses — see the official HMRC guidance on simplified expenses for detailed calculations.

2. Travel and Mileage

Business journeys (not your regular commute) are deductible.
Examples:

• Mileage for visiting clients or suppliers

• Parking and toll fees

• Public transport for work-related trips

Warning: Home-to-office travel doesn’t qualify unless your home is your base of operations.

3. Professional Training and Courses

Keeping your skills sharp is vital — and HMRC often allows training costs.
Examples:

• Courses that maintain or improve your existing business skills

• Webinars and seminars related to your trade

Note: Training for new skills (unrelated to your current business) usually isn’t deductible.

You can also read HMRC’s training expenses guidance to understand what qualifies as allowable.

(Anchor: “HMRC’s training expenses guidance” — dofollow)

4. Business Subscriptions and Software

Many owners forget about small recurring payments that add up.
Examples:

• Accounting software (e.g., QuickBooks, Xero)

• Cloud storage (Google Drive, Dropbox)

• Trade journals and professional memberships

5. Marketing and Advertising

Expenses related to promoting your business are fully allowable.
Examples:

• Social media ads, Google Ads

• Website hosting and design

• Flyers, business cards, or branded merchandise

6. Bank Charges and Interest

If you have a business bank account or credit card, the related costs can be claimed.
Examples:

• Account fees and overdraft interest

• Merchant service fees (e.g., PayPal, Stripe)

Tip: Keep business and personal accounts separate to avoid confusion.

7. Office Equipment and Furniture

Everyday work essentials can qualify for tax relief.
Examples:

• Laptops, printers, monitors

• Desks, ergonomic chairs

• Office supplies (paper, ink, pens)

8. Mobile Phones and Communication

You can claim business-related phone and internet expenses.
Examples:

• Mobile contracts used for client calls

• SIM cards and data packages

• Virtual meeting software (Zoom, Teams)

Warning: If you use the same phone for personal and business use, only claim the business proportion.

9. Professional Fees

Professional advice is a business expense — and a smart investment.
Examples:

• Accountant or tax adviser fees

• Legal or consultancy services

• Financial advice directly related to your business

10. Bad Debts

If a customer never pays you — despite your efforts — you may claim it as a bad debt.
Tip: Make sure the debt is genuinely unrecoverable and properly written off in your accounts.

Why These Expenses Matter

Claiming all allowable business expenses isn’t just about saving tax — it’s about keeping your finances healthy and compliant. Missing even a few of these can mean losing hundreds (or even thousands) of pounds every year.

How Tax Return Assist Helps You

We specialise in helping UK businesses get the full benefit of legitimate tax relief, while staying compliant with HMRC:

• In our Small Business Accountants packages, we ensure all allowable expenses are captured in your accounts.

• Our Self Assessment service includes a full review of your eligible reliefs and expenses.

• For Limited Companies, we handle corporation tax returns, annual accounts, and ensure you don’t miss capital allowances.

• Our Bookkeeping service ensures that your daily transactions are correctly categorised, so no expense slips through.

Let’s Make Sure You’re Claiming Everything

At Tax Return Assist, we help UK business owners identify every allowable expense to reduce their tax bill — safely and legally.

✅ Review your business expenses for hidden claims
✅ Get tailored advice on business expenses tax relief
✅ Stay HMRC-compliant and save money effortlessly

→ Ready to make sure you’re not missing anything?
Contact us for a free consultation, or request an instant quote via our Instant Quote page to start your expense evaluation today.
Let us help you confidently claim what you’re entitled to — while you focus on growth.

 HMRC