Self-Employed Expenses 2026: What You Can Claim (UK Guide)
Self-employed workers in the UK can claim expenses that are wholly and exclusively for business purposes. The most valuable deductions are mileage at 45p per mile (first 10,000 miles), phone and data costs, equipment, insurance, and professional fees. Claiming all allowable expenses can reduce your tax bill by £500–£3,000 per year depending on income.
Key Takeaways
- Mileage allowance: 45p/mile (car, first 10,000 miles), 25p/mile thereafter, 20p/mile for bicycles
- Trading allowance: £1,000 — no tax owed if gross self-employment income is at or below this
- Home office flat rate: £6 per week (£312/year) with no detailed records required
- Phone and internet: claim the business-use proportion only, not the full bill
- Equipment purchased solely for work is 100% deductible in the year of purchase via Annual Investment Allowance
- Records must be kept for at least 5 years after the 31 January filing deadline
What Mileage Can Self-Employed Workers Claim in 2026?
Mileage is the largest deduction for most gig workers. HMRC's Approved Mileage Allowance Payment (AMAP) rates let you claim a flat rate per business mile instead of tracking fuel, depreciation, and insurance separately.
| Vehicle Type | First 10,000 Miles | Above 10,000 Miles |
|---|---|---|
| Car or van | 45p per mile | 25p per mile |
| Bicycle | 20p per mile | 20p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Deliveroo / Bolt Food rider (10,000 miles) | £2,000 total deduction (bicycle rate) | |
Deliveroo and Bolt Food riders use the bicycle rate of 20p per mile. All other platforms — Uber, Amazon Flex, Just Eat (motorised), Stuart — use the car rate of 45p per mile.
You can claim mileage allowance relief if you use your own vehicle for business journeys and your employer does not pay you the full HMRC approved amount.
— GOV.UK — Mileage Allowance Relief
Keep a mileage log recording the date, start and end point, business purpose, and miles driven for every journey. Apps such as TripLog or MileIQ make this straightforward. HMRC may request your log during a compliance check.
Mileage vs Actual Costs: Which Saves More?
An Uber driver covering 12,000 business miles per year claims £4,750 under AMAP (10,000 x 45p + 2,000 x 25p). Switching to actual costs — tracking fuel, insurance, MOT, and depreciation — rarely produces a higher figure for part-time gig work and requires far more record-keeping. Use AMAP unless you drive a high-cost vehicle full time.
Can You Claim Your Phone Bill as a Self-Employed Expense?
Yes — but only the proportion used for business. HMRC does not allow you to claim a personal phone bill in full simply because you use the same device for gig work.
- Estimate your business use as a percentage — for example, 60% if you use your phone mainly for delivery navigation, customer contact, and platform apps
- Apply that percentage to your monthly bill (line rental, data, calls)
- Claim the resulting amount on your Self Assessment return under phone, fax and internet
- Keep three months of bills and a written note of how you calculated the split
If you purchase a dedicated work handset used solely for gig work, you can claim 100% of the cost in the year of purchase under the Annual Investment Allowance.
Home broadband follows the same rule. If broadband is shared with personal use, estimate the business proportion — typically 20–40% for most gig workers who use it for route planning and record-keeping.
What Equipment Can Gig Workers Claim as an Expense?
Equipment and tools used wholly for your self-employed work are fully deductible in the year you buy them via the Annual Investment Allowance (AIA). For most gig workers the relevant items are modest in cost but add up quickly.
- Insulated delivery bags and boxes: 100% deductible if purchased for delivery work
- Helmets and hi-visibility gear: 100% if used solely for work
- Phone mount, power bank, and charging cables: 100% if dedicated to gig work
- Bicycle accessories: Lights, locks, and panniers used for delivery rides
- Laptop or tablet: The business-use proportion if shared with personal use
- Dashcam: 100% if purchased to protect against claims during deliveries
Keep the receipt and note the business purpose for every item. For mixed-use purchases (a laptop used for both work admin and personal browsing), apply the same proportional approach as with phone bills.
Can Self-Employed Workers Claim Home Office Expenses?
Yes. Even if you spend most of your working time out on deliveries, you likely use your home for admin tasks — logging earnings, tracking mileage, filing your Self Assessment return. HMRC allows two methods.
- Flat rate method: Claim £6 per week (£312 per year) with no detailed records. Add this to your expenses total on your tax return.
- Actual costs method: Calculate the proportion of your home used for work. Divide the number of rooms used for work by total rooms, then apply the proportion to rent, mortgage interest, council tax, utilities, and broadband. This method requires detailed records and is rarely worthwhile for part-time gig workers.
Most self-employed gig workers use the £6 per week flat rate. It is straightforward, auditable, and saves up to £62 in tax per year at the basic rate without any record-keeping burden.
HMRC Simplified Expenses
HMRC publishes flat rate tables for home office use based on hours worked at home per month. Working 25–50 hours at home monthly gives £10/month; 51–100 hours gives £18/month; over 100 hours gives £26/month. See the GOV.UK simplified expenses guide for the full table.
Can You Claim Insurance and Professional Fees as Self-Employed Expenses?
Yes. Any insurance or professional service that is wholly and exclusively for your business is deductible.
- Public liability insurance: Fully deductible — essential for most self-employed gig workers
- Courier or hire-and-reward insurance: Deduct the premiums in full if the policy covers your business use
- Accountant or bookkeeper fees: 100% deductible — including fees for preparing your Self Assessment return
- Tax software subscriptions: Fully deductible (e.g. FreeAgent, QuickBooks, or HMRC-approved apps)
- Trade or professional memberships: Deductible if relevant to your self-employment
- Bank charges: Business account fees and transaction charges are deductible; personal account charges are not
Platform fees charged by Deliveroo, Uber, Amazon Flex, or other gig platforms — where the platform deducts a commission before paying you — can also be claimed as a cost of sales, reducing your gross profit directly.
What Expenses Cannot Self-Employed Workers Claim?
HMRC disallows any expense that has a significant personal element or that is not wholly for business. Common mistakes include:
- Ordinary clothing: Everyday cycling gear, trainers, or casual clothes worn during deliveries do not qualify. Only uniforms, branded workwear, or protective equipment qualifies.
- Personal travel: Commuting between home and a fixed base is not deductible. Journeys between delivery zones during a shift are business miles and can be claimed.
- Meals and subsistence: HMRC does not allow meal costs for self-employed workers in most circumstances unless you are travelling away from your normal work area on a temporary assignment.
- Fines and penalties: Parking fines, speeding fines, and other penalties are never deductible, even if incurred during a delivery.
- Capital repayments: Mortgage capital repayments are not deductible; only mortgage interest qualifies (and only the business proportion).
If you are uncertain whether an expense qualifies, apply the wholly and exclusively test. If you would have incurred the cost regardless of your self-employment, it probably does not qualify.
How Much Can You Save by Claiming Expenses?
The table below shows estimated annual tax savings for common expense categories at a gross income of £28,000 (Uber Eats driver, basic rate taxpayer).
| Expense Category | Typical Annual Claim | Tax Saved (20% + 6% NI) |
|---|---|---|
| Mileage (8,000 miles, car) | £3,600 | £936 |
| Phone bill (60% business) | £216 | £56 |
| Equipment (bags, mount, etc.) | £150 | £39 |
| Insurance (courier policy) | £400 | £104 |
| Home office (flat rate) | £312 | £81 |
| Total | £4,678 | £1,216 |
A driver earning £28,000 who claims all allowable expenses reduces their taxable profit to approximately £23,322, saving over £1,200 in combined Income Tax and Class 4 National Insurance. Use the UKGigTax calculator to model your own figures.
Frequently Asked Questions
What expenses can self-employed workers claim in 2026?
Allowable expenses include mileage (45p/mile for cars, 20p/mile for bicycles), the business proportion of phone and internet bills, equipment used wholly for work, insurance, professional fees, and home office costs. All expenses must be wholly and exclusively for business purposes.
How much mileage can I claim if self-employed?
The HMRC AMAP rate for cars is 45p per mile for the first 10,000 business miles, then 25p per mile. Bicycle riders claim 20p per mile. There is no upper limit on the number of miles you can claim, but all journeys must be for business purposes.
Can I claim my phone bill if self-employed?
Yes, but only the business-use proportion. Estimate what percentage of your usage is for work — navigation, platform apps, customer contact — and claim that share of your monthly bill. Keep three months of statements and a written explanation of your calculation.
What is the trading allowance for 2026?
The trading allowance is £1,000 for 2025/26. If your total self-employment income is £1,000 or less, you do not need to register for Self Assessment or pay tax on it. Above £1,000, you must declare the income to HMRC.
Can gig workers claim a home office deduction?
Yes. The simplest approach is the HMRC flat rate of £6 per week (£312 per year), which requires no detailed records. Alternatively, calculate the actual proportion of your home costs attributable to business use, though this is rarely worth the extra complexity for gig workers.
Can I claim clothing as a self-employed expense?
Only uniforms, branded workwear, or protective gear qualifies. Everyday cycling clothes, trainers, or casual clothing worn during deliveries do not qualify, even if you would not otherwise buy them.
Do I need receipts for all my self-employed expenses?
Yes. HMRC requires records to be kept for at least five years after the 31 January submission deadline. For mileage, a dated logbook or app records are acceptable. For other expenses, keep digital or paper receipts and bank statements.
Tax compliance specialist since 2017. Helped 5,000+ freelancers and self-employed workers navigate HMRC allowable expenses and UK gig economy tax rules.