UK Trades Tax Deduction Checklist 2026
£8,400 average savings. Every legitimate deduction UK trades can claim—vehicles, tools, home office, CIS, travel, and more.
Average annual tax saving when you claim every deduction
Last year HMRC collected £2.3B in overpaid tax from self-employed trades. Not because trades are dishonest—because most don’t know what they can claim.
Keep the rest of your compliance stack tight with Complete CIS Tax Guide for Subcontractors 2026, Sole Trader vs Limited Company 2026, and Field Service Insurance Guide 2026.
⚠️ Not Tax or Accounting Advice
This guide is for informational purposes only and does not constitute tax advice, accounting advice, or professional financial services. Tax laws, allowances, and HMRC requirements change frequently.
Before making any tax decisions or filing returns: Consult a qualified accountant or tax advisor who can review your specific circumstances. What's mentioned here may not apply to your situation, and regulations may have changed since publication.
Official source: HMRC (gov.uk/hmrc)
This checklist contains every legitimate deduction for UK trades in 2026. Tick what applies and save thousands.
UK Trades Tax Deduction Calculator
Calculate your allowable business expenses and see how much tax you can save
Annual Deductible Expenses:
45p/mile or actual costs
£6/week simplified or actual costs
Must have company logo/branding
Vehicle & Travel Deductions
Van running costs
Tools & Equipment
Tools & materials
Home & Office Costs
- Home office allowance (flat rate £26/month or actual running costs)
- Business portion of broadband and phone bills
- Software subscriptions (Toolfy, accounting, quoting tools)
- Professional fees (accountant, legal advice)
- Bank charges on business accounts
Training & Compliance
- Trade association memberships (Gas Safe, NICEIC, FMB)
- CSCS cards, certification renewals, CPD courses
- Health & safety training, manuals, risk assessment costs
- Insurance premiums: tools, public liability, professional indemnity
Marketing & Sales
- Website hosting/design and SEO retainers
- Google/Facebook ads, lead-gen sites, directory fees
- Branded uniforms, vehicle wraps, signage
- Printed materials: flyers, business cards, brochures
- Client entertainment (allowable within HMRC limits)
Ask Your Accountant About
- Annual investment allowance for large purchases
- Flat rate VAT scheme eligibility
- Electric van grants and enhanced capital allowances
- Making Tax Digital and software requirements
Bottom Line
Keep every receipt, log every mile, and run this checklist quarterly so deductions don’t fall through the cracks. Snap receipts inside Toolfy, assign them to jobs, and your accountant gets a clean report at year end.
Build a pricing command center in Toolfy
- •Quote templates, emergency premiums, and deposits all in one library
- •Real-time job costing shows margin before you send the quote
- •Scenario calculators feed straight into invoices and payment plans
Related Articles
Complete CIS Tax Guide for Subcontractors 2026
Everything you need to know about the Construction Industry Scheme: CIS deductions, gross payment status, UTR registration, monthly returns, and common mistakes to avoid.
Sole Trader vs Limited Company for Trades 2026
Tax comparison guide with the £50k profit threshold where incorporating finally pays off.
Field Service Insurance Guide 2026
General liability, workers’ comp, bonding, cyber—coverage limits and shopping tactics for service contractors.