Every penny you can claim. Every receipt you need to keep.
As a self-employed tradesperson, you can deduct "wholly and exclusively" business expenses from your taxable income. Common categories: materials and supplies (timber, plaster, copper pipe, tiles), tools and equipment (drills, saws, PPE), vehicle costs (fuel or HMRC mileage allowance — not both), insurance (public liability, professional indemnity, van insurance), phone and internet (business proportion), clothing (protective workwear only, not ordinary clothes), training (courses directly related to your trade), and accountancy fees.
If you use your own vehicle for business travel, you can claim 45p per mile for the first 10,000 miles and 25p per mile after that (cars and vans). This covers fuel, insurance, servicing, and depreciation — you cannot claim those separately if you use the mileage rate. Alternatively, you can claim actual vehicle costs and apportion the business percentage, but most sole traders find the mileage allowance simpler.
HMRC requires you to keep records of all income and expenses for at least 5 years after the 31 January submission deadline. For each expense, keep the date, amount, and what it was for. Receipts are the gold standard — a photo is fine, you do not need the paper original. GraftG stores receipt photos with extracted amounts, dates, and categories permanently.
If your total self-employment income is under £1,000, you do not need to report it. Above that, you can either deduct the £1,000 trading allowance (no receipts needed) or deduct your actual expenses — whichever gives you the bigger deduction. Most tradespeople with any real turnover will be better off claiming actual expenses.
Online self-assessment returns for the 2025/26 tax year (6 April 2025 to 5 April 2026) must be filed by 31 January 2027. The 2026/27 return is due 31 January 2028. Payments on account (advance payments towards next year's bill) are due 31 January and 31 July. Late filing triggers an automatic £100 penalty.
GraftG logs your mileage, receipts, and income throughout the year so you are not scrambling in January. MILES YEAR gives your HMRC mileage total. RECEIPTS gives expense totals by category. MTD EXPORT (Pro) emails you CSV files of invoices, receipts, and a VAT summary for the quarter. Hand those to your accountant or enter them directly into your HMRC online return. From £14/month.
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