Allowable Expenses

Business costs you can deduct from your income before calculating tax. In the UK: home office, equipment, software, travel, professional fees, training, if wholly for business use.

Claiming all legitimate allowable expenses legally reduces your tax bill. Most founders under-claim, missing out on hundreds or thousands of pounds in savings they're entitled to.

A founder claims: £150/month home office, £500 camera, £1,200 software subscriptions, £800 in course fees. These reduce her taxable profit by £4,700, saving £940 in tax at the basic rate.