Other business expenses
for sole traders

Other business expenses is box 30 on the full self-employment pages. It is for allowable costs that do not fit another category: trade and professional journals and subscriptions, sundry running costs, net VAT payments, and transitional adjustments if you have left the cash basis. It is also where many personal costs are wrongly claimed, so this page lists what does not belong here too.

What goes in this category

• Trade and professional journals and subscriptions.
• Sundry running costs that fit no other category.
• Net VAT payments, where relevant, such as on the Flat Rate Scheme.
• Transitional adjustments if you have left the cash basis.

What does not

• Payments to clubs, charities or political parties.
• Any non-business part of an expense.
• The cost of ordinary clothing.
• Personal costs such as gym, grooming, health and insurance for yourself.

Items in this category

What belongs here

Box 30 collects allowable costs that do not fit elsewhere: subscriptions, protective clothing and uniforms, small equipment on the cash basis, training, business insurance other than premises and indemnity cover, and other sundry costs. If a cost has its own box, use that box instead.

The disallowable column

The SA103F notes say payments to clubs, charities or political parties, any non-business part of an expense, and the cost of ordinary clothing are disallowable. If your accounts include them in box 30, put the same amount in box 45 so they are added back.

Personal costs

Many personal costs are claimed here by mistake: gym membership, haircuts, glasses, medical treatment, personal insurance, childcare, and donations. They all fail the wholly and exclusively test. If paid from the business account, record them as drawings.

Equipment on the cash basis

On the cash basis, tools, equipment and furniture are expenses when you pay, and many sole traders put them here. On traditional accounting, they go through capital allowances instead.

Net VAT payments

If you are on the VAT Flat Rate Scheme, you may include your turnover gross of VAT and put the VAT you pay to HMRC here as an expense. Businesses using standard VAT accounting usually exclude VAT from both income and expenses instead.

Transitional adjustments

If you move from the cash basis to traditional accounting, a transitional adjustment makes sure income and expenses are counted once. The notes say it can be included here.

Subscriptions and memberships

Trade and professional journals, and trade body or professional organisation memberships related to your business, are allowable. Social clubs, gyms and heritage memberships are not.

Training and clothing

Training that updates skills you use in your business is allowable; training for a new business is not. Uniforms, protective clothing and costumes are allowable; everyday clothing is not, even if worn only for work.

Short form and Making Tax Digital

If your turnover is under £90,000, you can use the short self-employment pages and give one total for allowable expenses. Making Tax Digital quarterly updates allow a single expenses figure under the same threshold; above it, other expenses has its own category.

Records to keep

Keep receipts with a short note of the business purpose, especially for sundry costs where the purpose is not obvious from the receipt. It makes the figure easy to explain if HMRC asks.

Worked example: a gardener’s box 30

A gardener's accounts show £180 for a trade magazine and association membership, £240 for protective gloves and boots, £420 for public liability insurance, £520 for her gym and £300 for charity donations. Box 30 is £1,660, of which £820 (gym and donations) also goes in box 45.

Four questions before a cost goes here

1. Was it for the business, and only for it? A cost must be incurred wholly and exclusively for the trade. A cost with a personal purpose that cannot be separated is not allowable at all.
2. Is part of it personal? Where a business part can be identified, such as business miles or business calls, claim that part on a reasonable basis and leave the rest out.
3. Is it a running cost or something you keep? Running costs belong in the expense categories. Things you keep are capital: an expense on the cash basis (except cars), capital allowances on traditional accounting.
4. Is there a specific rule? Some costs are disallowed whatever their purpose, such as fines and client entertaining, and some have their own treatment, such as cars, which always go through capital allowances.

Trading allowance or expenses

Instead of deducting expenses, a sole trader can claim the £1,000 trading allowance against trading income. You cannot claim both, so the allowance only helps when your allowable expenses are under £1,000. If your gross trading income is £1,000 or less, the allowance covers it and you may not need to register. Once your costs pass £1,000, deducting actual expenses gives the lower profit.

This category in Making Tax Digital

Under Making Tax Digital for Income Tax, each quarterly update carries your expenses in the same 15 categories as the full self-employment pages, so this category is one line of every update. Sole traders with qualifying income over £50,000 join from 6 April 2026, falling to £30,000 from April 2027 and £20,000 from April 2028. If your turnover is under £90,000 you can send one consolidated expenses figure instead of the categories, but you still keep the records behind it. The same £90,000 limit decides whether you can use the short self-employment pages (SA103S), which ask only for total allowable expenses.

Cash basis or traditional accounting

Which accounting basis you use changes when a cost in this category counts, and sometimes whether it counts as an expense. On the cash basis, now the default, you deduct costs when you pay them and most things you buy to keep are ordinary expenses (cars being the exception). On traditional accounting, you deduct costs when you incur them and claim capital allowances for things you keep.

The disallowable column

The full self-employment pages have a second column of boxes (32 to 45) for disallowable expenses. If your accounts include something that is not allowable, such as the private share of a phone bill or client entertaining, you put the total cost in the expense box and the disallowable part in the matching box, so the tax calculation adds it back. The short pages (SA103S) simply ask for allowable expenses, so you leave the disallowable part out.

How much an allowable cost saves

Each pound of allowable expense saves a sole trader 26p at the basic rate (20% Income Tax plus 6% Class 4 National Insurance) and 42p at the higher rate, in England, Wales and Northern Ireland. Scottish Income Tax bands differ, and the sole trader tax calculator works out your own figure.

What £1,000 of allowable expense saves a sole trader in 2026/27

• Basic rate (20% + 6%)£260
• Higher rate (40% + 2%)£420
• Additional rate (45% + 2%)£470
• Allowance taper band (60% + 2%)£620

Records to keep

Keep the invoice or receipt for every cost in this category, with a note of the business purpose wherever it is not obvious, and how you worked out the business share of anything also used privately. From 6 April 2026, sole traders and landlords with qualifying income over £50,000 keep digital records and send quarterly updates under Making Tax Digital, falling to £30,000 from April 2027 and £20,000 from April 2028.

Common mistakes

• Putting personal costs here without the box 45 adjustment.
• Using box 30 for costs that have their own box.
• Claiming ordinary clothing.

Every other category

The other 14 categories on the self-employment pages, in box order:

• Cost of goods sold, SA103F box 17
• Construction industry payments to subcontractors, SA103F box 18
• Wages, salaries and other staff costs, SA103F box 19
• Car, van and travel expenses, SA103F box 20
• Rent, rates, power and insurance costs, SA103F box 21
• Repairs and maintenance of property and equipment, SA103F box 22
• Phone, stationery and other office costs, SA103F box 23
• Advertising costs, SA103F box 24
• Business entertainment, SA103F box 24, disallowed in box 39
• Interest on bank and other loans, SA103F box 25
• Bank, credit card and other financial charges, SA103F box 26
• Irrecoverable debts written off, SA103F box 27
• Accountancy, legal and other professional fees, SA103F box 28
• Depreciation and loss or profit on sale of assets, SA103F box 29, disallowed in box 44

The A to Z of expenses lists every item and all 23 categories: the 15 self-employment categories and the 8 for UK property.