5 Expenses Contractors Often Miss

The Hidden Cost of Overlooked Expenses

As a contractor, every legitimate expense you don’t claim is money you’re giving away. After working with hundreds of contractors, we’ve identified the five most commonly missed expenses.

1. Use of Home as Office

If you work from home — even part of the time — you can claim a proportion of your household costs. This includes heating, electricity, broadband, and even a share of your rent or mortgage interest.

How to Calculate Your Claim

HMRC allows two methods: the simplified flat rate (currently £6/week with no receipts needed) or the actual cost method where you calculate the proportion of your home used for business.

2. Professional Subscriptions and Training

Professional body memberships, industry publications, and training courses directly related to your current trade are all allowable. This includes online courses and conferences.

3. Mileage and Travel

If you travel to temporary workplaces, you can claim 45p per mile for the first 10,000 miles and 25p thereafter. Many contractors forget to log journeys to client sites, networking events, and the bank.

4. Phone and Internet Costs

Your mobile phone bill and home broadband are partially claimable if used for business. Keep records of your business usage percentage.

5. Bank Charges and Interest

Business bank account fees, overdraft interest, and even the cost of accountancy software are all legitimate deductions that many contractors overlook.

Take Action

If you’re unsure whether you’re claiming everything you’re entitled to, book a free discovery call with us. We’ll review your situation and make sure you’re not paying more tax than you need to.