Common allowable expenses
- Materials and parts used on jobs
- Tools and equipment
- Van running costs, or mileage instead
- Insurance, such as public liability
- Protective clothing and uniforms with your logo
- Trade body and scheme memberships
- Phone, internet and software for the business
- Accountant fees
- Advertising and website costs
Van costs vs mileage
You can claim actual van costs (fuel, repairs, insurance, finance interest) or use HMRC's simplified mileage rates. For the 2026 to 2027 tax year those are 55p a mile for the first 10,000 business miles, up from 45p, and 25p a mile after that. Motorcycles stay at 24p and bicycles at 20p. Once you choose a method for a vehicle you must stick with it. Big purchases like the van itself are usually claimed through capital allowances.
What you cannot claim
- Ordinary clothing, even if you wear it to work
- Travel from home to a regular place of work
- Personal use of your van or phone
- Fines and penalties
- Food, unless you are travelling away overnight
How to record expenses for MTD
Take a photo of each receipt on the day and record the amount and category in your software. At the end of each quarter, your quarterly update includes expense totals by category. You do not send receipts to HMRC, but keep them in case of a check.
Trading allowance
If your expenses are small, you can claim the £1,000 trading allowance instead of actual costs. Most tradespeople with a van and materials are better off claiming real expenses.
Where Fixxa fits
Fixxa is built with Making Tax Digital in mind. You talk or message on WhatsApp, Fixxa builds the quote or invoice, and Fixxa Pay sends faster payment links. Every job becomes a clean digital record you or your accountant can use for quarterly updates. Fixxa is £19.99 a month or £190 a year, with a 14 day free trial and no card needed. Direct quarterly submissions to HMRC are on the Fixxa roadmap.