5 Tax Deductions Every UK Tradie Should Know About

If you’re self-employed in the trades, you’re probably paying more tax than you need to. Not because HMRC is out to get you — but because you’re not claiming everything you’re entitled to.

Here are five deductions that UK tradespeople commonly miss.

1. Vehicle Expenses

Your van is your office, your workshop, and your delivery vehicle. HMRC knows this, and there are two ways to claim:

Option A: Simplified Mileage Rate

• 45p per mile for the first 10,000 business miles
• 25p per mile after that

Option B: Actual Costs

Claim the business percentage of:

• Fuel
• Insurance
• Road tax
• MOT and servicing
• Repairs
• Lease or finance payments

Which is better? Generally, if you drive a newer or more expensive vehicle, actual costs win. If you drive an older, cheaper vehicle, mileage rates might be better. Run the numbers both ways.

Pro tip: Keep a mileage log. Even a simple spreadsheet with date, destination, and miles is enough. Without records, HMRC can deny the claim entirely.

2. Tools and Equipment

Everything you buy to do your job is deductible:

• Hand tools — Spanners, drills, saws, levels
• Power tools — Claimed in full in the year of purchase (under Annual Investment Allowance)
• Safety equipment — PPE, hi-vis, steel-toe boots
• Workwear — But only if it’s specifically for work (branded or protective)

The rule: If you wouldn’t buy it except for work, it’s probably deductible.

Important: Keep receipts. A photo on your phone counts, but make sure the date, amount, and item description are visible.

3. Working from Home

Even if you spend most of your time on site, you probably do admin at home — quoting, invoicing, ordering materials, answering emails.

HMRC Simplified Rate

• 25-50 hours/month working from home: £10/month
• 51-100 hours/month: £18/month
• 101+ hours/month: £26/month

Actual Costs (Proportional)

Calculate the business proportion of:

• Electricity and gas
• Internet
• Council tax
• Mortgage interest or rent

Example: If you use one room out of five primarily for business, you can claim 20% of household costs for the time it’s used.

4. Training and Professional Development

Investing in yourself is tax-deductible — as long as the training is related to your current trade:

• Courses and certifications — Gas Safe renewal, 18th Edition, CSCS cards
• Trade subscriptions — Professional body memberships
• Books and manuals — BS 7671, building regulations guides
• Online courses — Business skills, software training

What you can’t claim: Training for a completely new trade. If you’re an electrician training to be a plumber, that’s not deductible. But an electrician learning about EV charging installations? Absolutely.

5. Phone and Technology

Your phone is a business tool. Claim accordingly:

• Phone contract — Business percentage of your monthly bill
• A separate work phone — 100% deductible
• Apps and software — Accounting apps, trade management tools, cloud storage
• Computer or tablet — If used for business (proportion of personal use may need to be excluded)

Bonus: Often Overlooked Deductions

• Parking and tolls on business journeys
• Trade waste disposal fees
• Advertising — Website, business cards, van signage
• Insurance — Public liability, professional indemnity, tool insurance
• Accountancy fees — Yes, the cost of getting your tax done is tax-deductible

How Much Could You Save?

A typical self-employed tradesperson earning £45,000 might have £8,000-£12,000 in legitimate deductions they’re not fully claiming. At the basic rate, that’s £1,600-£2,400 back in your pocket every year.

Action Steps

1. Start tracking expenses now — Use an app or a simple spreadsheet
2. Keep every receipt — Photo them on the spot
3. Review last year’s return — You might be able to amend it
4. Talk to a trade-specialist accountant — They’ll pay for themselves many times over

Don’t leave money on the table. Everything listed here is perfectly legal and expected by HMRC. The only mistake is not claiming it.