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Complete list of self-employed allowances

We've updated this guide on 26th October 2021

If you’re a sole trader, there are a ton of self-employed allowances that you can use to pay less tax.

1. The Trading Allowance

You can claim the first £1,000 of income from self-employment as a flat tax-free allowance.

You won’t be eligible to claim other expenses, though (including the allowances listed below).

Still, for most self-employed people this is more than their expenses.

Plus, no more receipts.

2. The Home Office Allowance

If you work from home, you have two options:

  • you can claim the proportion of your home costs (rent, bills) that’s used for business, or
  • you can use the flat Home Office Allowance instead:
Hours of business use per month Flat rate that you can claim
25 – 50 hours £10 per month
51 – 100 hours £18 per month
More than 101 hours £26 per month

3. The Mileage Allowance

If you don’t want to keep track of every receipt related to your car (insurance, repairs, fuel, etc.), you can just opt for “simplified expenses” and use this flat rate called the Mileage Allowance instead:

Do you own the vehicle you use for work?
Did you buy the vehicle specifically to use for work?
Type of vehicle
How many miles do you drive per year?
If you’re self-employed and use your car for work, you can claim back a flat rate for your usage costs using the Mileage Allowance. If you’re employed, claim the mileage tax relief instead.

If I claim these self-employed allowances, do I still get the general ones?

Yes.

All of these self-employed allowances are on top of the general allowances:

How do I claim them?

You can just claim them through your Self Assessment tax return.

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