📊 Business Expense Tracker

How to Track Business Expenses as Self-Employed in the UK

If you're self-employed, a sole trader, or a freelancer in the UK, keeping accurate records of your business expenses is a legal requirement. HMRC expects you to keep records for at least 5 years after the 31 January submission deadline of the relevant tax year.

What Counts as a Business Expense?

A business expense is any cost that is wholly and exclusively for business purposes. You can deduct allowable expenses from your income to reduce your tax bill. Common categories include:

• Office costs — stationery, phone bills, postage, software subscriptions
• Travel — fuel, parking, train/bus fares, hotel rooms for business trips
• Marketing — website hosting, advertising, business cards
• Professional fees — accountant fees, solicitor costs, insurance
• Working from home — proportion of rent, utilities, broadband (or the £6/week flat rate)

HMRC Expense Categories for Self-Assessment

When you fill in your Self Assessment tax return (SA103), HMRC groups expenses into specific categories. This tracker uses those same categories so your records are already organised for your tax return.

Making Tax Digital (MTD) from April 2026

From 6 April 2026, self-employed individuals earning over £50,000 must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC. Even if you're below the threshold, keeping digital records now will make the transition easier.

This free tracker helps you build the habit of logging expenses digitally. For MTD-specific guidance, see our complete MTD guide and MTD readiness checker.

Tips for Tracking Expenses

• Record expenses as they happen — don't leave it until year-end
• Keep receipts — photograph them and store digitally
• Separate business and personal spending — use a dedicated business account
• Export regularly — download your CSV backup monthly
• Check HMRC guidance — when unsure if something qualifies, check gov.uk expenses guidance