I am often asked, what counts as a business expense for sole traders? I have outlined below some of the most common expenses you should expect to incur.
Professional fees Accountancy
Solicitors
Surveyors
Architects Advertising and business entertainment Newspaper ads Online ads Website costs Ad printing costs
General advertising costs
Financial charges Bank, overdraft and credit card charges Hire purchase interest and leasing payments
Alternative finance payments
Interest on bank and business loans
Car, van & travel
Car and van insurance Repairs
Servicing
Fuel
Parking
Hire charges
Vehicle licence fees AA/RAC membership Train, bus, air and taxi fares
(please note, if you use the mileage method for travel expenses, the above costs are irrelevant)
Office costs Phone Mobile
Internet
Email and fax running costs
Postage
Stationery
Printing
Small office equipment costs Computer software
Filing systems
Cost of goods
Cost of goods for resale
Raw materials
Direct cost of producing goods
Rents, rates, power, insurance Rent for business premises
Business and water rates
Light, heat, power
Property insurance
Repairs and renewals Repairs and maintenance of business premises and equipment
Renewals of small tools and items of equipment
Salaries and wages Salaries Wages Bonuses Pensions Benefits for staff or employees Agency fees Subcontract labour costs
Employers’ NICs etc.
Other expenses
Insurance costs Licensing costs
Miscellaneous sundries
Subscriptions
Professional memberships
Capital allowances You can claim capital allowances for certain items that you can't claim as an allowable expense, for example: • plant and machinery – including cars, vans, computers, tools
• fixtures and fittings – including shelves, furniture, fittings