What Expenses Can Tradesmen Claim Against Tax?

This guide is part of our Tax for Tradesmen section, where we explain how tax works for self-employed tradespeople.

Introduction

One of the biggest advantages of being self-employed is that you can deduct legitimate business expenses before paying tax. Many tradesmen pay more tax than necessary simply because they don’t realise what they’re allowed to claim.

The basic rule from HM Revenue & Customs is simple: an expense must be “wholly and exclusively” for business use to be claimed against tax.

This means the cost must be directly related to running your business. When recorded properly, these expenses reduce your taxable profit, which lowers the amount of Income Tax and National Insurance you need to pay.

For tradespeople who regularly buy tools, materials, fuel, and equipment, understanding allowable expenses can make a significant difference to the final tax bill.

Common Expenses Tradesmen Can Claim

Tools and Equipment

Most tradespeople spend a significant amount of money on tools and equipment each year. Items that are used for work can usually be claimed as business expenses.

Examples include:

• Power tools
• Hand tools
• Ladders
• Tool storage systems
• Safety equipment

If a tool is used purely for work, the full cost can usually be claimed as a business expense.

For larger equipment purchases, different accounting rules may apply, but the cost can still normally be offset against profits.

Materials and Consumables

Any materials purchased to complete jobs for customers are considered business costs.

Examples include:

• Timber
• Cable
• Screws and fixings
• Pipework
• Sealants
• Adhesives
• Paint

These materials are purchased purely for the purpose of completing paid work, so they are normally fully deductible.

---

Work Vehicles and Travel

Travel is another major cost for many tradesmen. If you use a van or vehicle for work, some of the running costs can usually be claimed.

Examples include:

• Fuel
• Vehicle insurance
• Road tax
• Servicing and repairs
• MOTs
• Parking for work purposes

Alternatively, some self-employed workers choose to claim a mileage allowance instead of actual vehicle costs.

The method used should be consistent each tax year.

Work Clothing and Safety Gear

Normal everyday clothing cannot be claimed as a business expense.

However, specialist workwear or protective equipment required for your job can usually be claimed.

Examples include:

• Steel toe boots
• Hard hats
• High visibility clothing
• Protective gloves
• Safety goggles

These items are considered necessary for many trades and are typically allowable expenses.

Insurance

Many self-employed tradespeople need insurance to operate professionally and protect their business.

Common examples include:

• Public liability insurance
• Tool insurance
• Professional indemnity insurance

These policies are considered legitimate business costs and can normally be deducted from profits.

Phone and Internet

If you use your phone or internet connection for business purposes, a portion of the cost can often be claimed.

For example:

• Work phone contracts
• Business mobile phones
• Internet used for invoices, emails, or scheduling

If the service is used for both personal and business use, only the business portion should be claimed.

Professional Services

Many tradespeople use professional services to help run their business.

These costs can include:

• Accountants
• Bookkeeping services
• Business bank fees
• Tax software

Paying for professional support can save time and help ensure your accounts are handled correctly.

Home Office Costs

If you run your business from home, some household costs may be partially claimed.

Examples include:

• A portion of electricity
• Heating
• Internet
• Office equipment

These costs must reflect business use only.

Why Keeping Receipts Matters

To claim expenses correctly, you must keep records of your purchases.

HM Revenue & Customs requires self-employed people to keep records of:

• Income
• Expenses
• Receipts
• Invoices

These records should usually be kept for at least five years after the tax return deadline.

Good record-keeping also makes it far easier to complete your Self Assessment tax return.

Common Expense Mistakes Tradesmen Make

Many tradespeople accidentally overpay tax because they forget to record expenses.

Common mistakes include:

• Losing receipts
• Not tracking fuel or travel costs
• Forgetting smaller purchases like fixings or consumables
• Mixing personal and business spending

Keeping organised records throughout the year helps prevent these issues.

Final Thoughts

Understanding what expenses you can claim is one of the simplest ways to reduce your tax bill when self-employed.

By recording legitimate business costs and keeping accurate records, tradespeople can ensure they only pay tax on their true profit, not their total income.

If you want to understand how these expenses affect the amount of tax you should save, see our guide on how much tax self-employed tradesmen should set aside each month.

As a example, a self-employed electrician earning £50,000 in a year might spend £15,000 on materials, fuel, tools and insurance.

Instead of paying tax on the full £50,000, tax is only calculated on the remaining £35,000 profit.

Key Takeaways

• Business expenses reduce your taxable profit
• The cost must be “wholly and exclusively” for business
• Keep receipts for at least 5 years
• Track expenses regularly to avoid overpaying tax

Usefull Links

How to Track Expenses Properlyhttps://financefortradesmen.wordpress.com/2026/03/09/how-to-track-expenses-properly/

How Self-Employed Tax Workshttps://financefortradesmen.wordpress.com/2026/03/09/how-self-employed-tax-works-for-tradesmen-in-the-uk-complete-guide/

How Tradesmen Should Keep Financial Recordshttps://financefortradesmen.wordpress.com/2026/03/09/how-tradesmen-should-keep-financial-records/

Written by the founder of Finance for Tradesmen, with over 30 years of experience in the electrical industry.