If you’re a self-employed plumber, electrician, builder, or any other tradesperson in the UK, you’re probably leaving money on the table at tax time. Many sole traders miss out on legitimate deductions simply because they don’t realise what counts as a business expense.
Here are five deductions you should be claiming — and how to make sure HMRC accepts them.
1. Tools and Equipment
This one seems obvious, but it’s worth breaking down. Hand tools like screwdrivers, spanners, and measuring tapes are fully deductible as business expenses in the year you buy them (SA103, Box 10).
Power tools over £200 — cordless drills, table saws, laser levels — qualify for capital allowances instead (Box 21). Under the Annual Investment Allowance (AIA), you can currently deduct the full cost in the year of purchase, up to £1 million. That’s a powerful tax break most tradespeople underuse.
TradeDocket tip: When you scan a receipt from Screwfix or Toolstation, TradeDocket automatically detects whether an item is under or over £200 and categorises it correctly.
2. Vehicle Costs
If you use a van or car for work, you can claim the business-use proportion of your vehicle costs. This includes:
- Fuel
- Insurance
- MOT and servicing
- Repairs and tyres
- Road tax
You need to track the split between business and personal miles. HMRC won’t accept a 100% business claim unless the vehicle is used exclusively for work.
Alternatively, you can use HMRC’s simplified mileage rate: 45p per mile for the first 10,000 miles, then 25p per mile after that. This is often simpler but not always the best value — do the maths for your situation.
3. Safety Equipment and Workwear
PPE is fully deductible. This includes:
- Steel-toe boots
- Hard hats
- Hi-vis jackets
- Safety goggles
- Dust masks and respirators
- Work gloves
General clothing is not deductible (even if you only wear it for work), but items that are clearly protective or have your business branding are fine. A plain pair of jeans? No. A branded polo with your company logo? Possibly — check with your accountant.
4. Phone and Software Subscriptions
Your mobile phone bill is deductible for the business-use portion. If you use one phone for work and personal, you’ll need to estimate the split (commonly 50-75% business use).
Monthly software subscriptions also count:
- Accounting software
- Receipt scanning (TradeDocket)
- Job management apps
- Cloud storage
- Website hosting
These all fall under Admin & Office expenses (SA103, Box 18).
5. Training and Professional Development
Courses that maintain or update your existing skills are deductible. For example:
- Gas Safe renewal
- 18th Edition wiring regulations course
- CSCS card renewal
- First aid certificates
- Manufacturer product training
Courses that teach you an entirely new trade are generally not deductible (e.g., a plumber training to become an electrician). The distinction matters — check with your accountant if you’re unsure.
Trade body memberships and subscriptions (Federation of Master Builders, JIB, Electrical Contractors’ Association) are also deductible under Professional Fees (Box 19).
The Golden Rule: Keep Your Receipts
None of these deductions matter if you can’t prove them. HMRC can ask for evidence of any expense you claim, and “I think I bought some drill bits” won’t cut it.
With Making Tax Digital coming into force from April 2026, digital record-keeping isn’t just good practice — it’s becoming a legal requirement for anyone earning over £50,000.
The easiest way to stay on top of it? Scan every receipt the moment you get it. TradeDocket does the rest — categorising each item, mapping it to the correct HMRC category, and keeping a running total by tax year.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified accountant for advice specific to your situation.