Allowable Expenses for Self-Employed Electricians

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Every allowable expense comes off your profit before Income Tax is worked out. HMRC’s example: turnover of £40,000 with £10,000 of allowable expenses means you pay tax on £30,000. This guide lists what a self-employed electrician can claim, and the common things you cannot.

Checked against HMRC’s guidance on GOV.UK on 06/10/2026. This guide is for sole traders and partners. If you trade through a limited company, the company claims its costs against Corporation Tax instead.

What you can claim

Materials for jobs

Cable, consumer units, accessories, fixings and anything else you buy to use on a customer’s job. HMRC counts these as stock and raw materials.

Tools and test equipment

How you claim equipment you keep, such as a multifunction tester, drills or ladders, depends on your accounting method:

  • Cash basis (now the standard method for sole traders): claim it as an allowable expense.
  • Traditional accounting: claim capital allowances instead.

Your van

You have two choices:

  • Actual costs: fuel, insurance, repairs and servicing, vehicle tax, breakdown cover and parking, for the business share of the van’s use.
  • The flat mileage rate: 55p a mile for the first 10,000 business miles in 2026/27, then 25p. Read our guide to the 55p mileage rate for the rules.

You cannot claim non-business driving, fines, or travel between home and work.

Workwear and protective clothing

Safety boots, hard hats, and overalls you only wear for work, including the cost of cleaning and repairing them. Everyday clothes are not allowed, even if you only wear them on site.

Training

Courses that keep your existing skills up to date, keep you current with the technology in your industry, or teach you new skills because your industry has changed, such as an update to the wiring regulations. You cannot claim training to start a new business, or to move into work that is not related to what you do now.

Trade bodies and subscriptions

Membership of a trade body or professional organisation related to your business, and trade or professional journals. Gym membership and political donations are not allowed.

Insurance

Any insurance policy for your business, for example public liability or professional indemnity insurance.

Phone, internet and software

  • The business share of your phone, mobile and internet bills. If a £200 phone bill is £70 business calls, you claim £70.
  • Software you pay for regularly, such as certificate or bookkeeping apps on a subscription.

People you pay

Subcontractors, staff wages, and employer’s National Insurance.

Money and professional costs

Bank and credit card charges, interest on business loans, and fees for an accountant or solicitor for business reasons. One exception surprises people: you cannot claim the cost of preparing and submitting your Self Assessment tax return.

Working from home

If you do your quotes, certificates and paperwork at home, you can claim a share of heating, electricity, Council Tax, rent or mortgage interest, and internet. You need a reasonable way to split the cost, such as the number of rooms you use. If you work from home for 25 hours or more a month, you can use HMRC’s flat monthly rates instead.

Advertising

Your website, adverts and directory listings. Promotional items with your logo, such as keyrings, are allowed up to £50 for each person a year. Food, drink and tobacco are not.

What you cannot claim

  • money you take out of the business for yourself
  • the personal share of anything you use for both work and home
  • everyday clothing
  • fines and penalty charges
  • entertaining customers or suppliers, such as lunches or event tickets
  • travel between home and work

The £1,000 trading allowance

You can choose HMRC’s £1,000 tax-free trading allowance instead of claiming expenses, but not both. Once you have more than £1,000 of real costs, claiming your actual expenses usually saves more.

Keep the proof

You do not send receipts with your tax return, but you must keep them in case HMRC asks. If you are in Making Tax Digital for Income Tax, your income and expenses must also be kept as digital records.

How Mint Books helps

Snap a receipt and Mint Books’ AI scanner reads the supplier, date, amount and VAT and saves it as an expense, so nothing gets lost in the van. Business miles are logged at the current HMRC rate, and your profit and tax estimate update as you go. If you already use iCertifi for your certificates, a completed certificate can become a draft invoice in Mint Books.

Mint Books for electrical contractors

Sources

This guide is general information, not tax advice. If your situation is complicated, speak to an accountant.