Small Business Tax Deductions in the UK: What You Can Claim and How to Save

When you run a small business tax deduction, a legitimate business cost you can subtract from your taxable income to reduce what you owe HMRC. Also known as business expense write-offs, these aren’t optional perks—they’re legal ways to keep more of your hard-earned money. If you’re a sole trader, partner, or limited company owner in the UK, you’re already eligible for dozens of deductions, but most miss half of them because they don’t know what counts.

You don’t need an accountant to claim these. You just need to know what counts as a business cost. For example, if you work from home, you can claim a portion of your rent, utilities, and internet—even if you’re not running a formal office. The same goes for your phone, laptop, or software subscriptions like QuickBooks or Canva. If you use it for business, even 30% of the time, you can deduct that part. business expenses, any cost directly tied to earning income for your business. Also known as operating costs, they include everything from stationery to mileage. And if you travel to meet clients, visit suppliers, or even go to the post office to send invoices, that’s deductible too. You don’t need a fancy logbook—just a simple note with date, destination, and purpose.

Don’t forget about training. If you take a course to improve your skills—whether it’s bookkeeping, digital marketing, or sales—HMRC lets you claim the cost. Same with professional memberships, like being part of the Federation of Small Businesses. Even your business insurance, accounting fees, and bank charges for your business account are all fair game. VAT deductions, the portion of VAT you pay on business purchases that you can reclaim if you’re VAT-registered. Also known as input tax recovery, this can be a hidden cash boost if you’re buying equipment or services. If you’re registered for VAT, you’re already reclaiming it—but many forget to include things like office supplies or repairs.

There’s a big difference between what you can claim and what you should claim. HMRC doesn’t care if you have a fancy desk chair—unless it’s used for business. They care if your expense is necessary, reasonable, and wholly for business. No personal gym memberships. No family vacations. But if you use your car for client visits, you can claim mileage at 45p per mile for the first 10,000 miles. That’s £450 for 1,000 miles—no receipts needed. And if you bought a £2,000 laptop last year? You can claim it all in one go under the Annual Investment Allowance. No spreading it over years.

What you’ll find in the posts below aren’t theory or guesswork. These are real examples from UK small businesses—photographers claiming camera gear, consultants writing off home office space, warehouse owners cutting costs with smarter storage. You’ll see how people actually claim these deductions, what paperwork they keep, and how they avoid HMRC red flags. No jargon. No fluff. Just what works.