Track Business Expenses

Track fuel, materials, equipment, and other business expenses. Upload receipts and maximize your tax deductions.

← Back to Help Center

Adding Expenses (2 minutes)

Go to Expenses → Add Expense

Click "Expenses" in left sidebar, then "Add Expense" button.

Upload receipt photo

• Take photo with phone camera or upload from computer

• Clear, readable image of entire receipt

• Include receipt date, merchant, and total amount

• Multiple photos if receipt is long or torn

Fill in expense details

• Date: When expense was incurred (auto-filled from receipt)

• Amount: Total spent including VAT (auto-filled from receipt)

• Category: Fuel, Materials, Equipment, etc.

• Merchant: Where you bought it (auto-filled from receipt)

• Description: What it was for (optional but helpful)

Link to job (optional)

If expense is for a specific job, link it for accurate job costing and client billing.

Save expense

Expense is saved with receipt attached and ready for tax deduction reporting.

Tax Savings:Proper expense tracking typically saves £3,000-8,000 annually in tax deductions for service businesses.

Expense Categories & Tax Treatment

Vehicle & Fuel

Examples: Petrol, diesel, parking fees, congestion charge, vehicle maintenance

Tax note: Business mileage and fuel are fully deductible

Materials & Supplies

Examples: Parts, tools, safety equipment, cleaning supplies, office supplies

Tax note: Materials for customer jobs are fully deductible

Equipment

Examples: Tools, machinery, computers, phones, software subscriptions

Tax note: Equipment over £500 may need to be depreciated

Professional Services

Examples: Accountant fees, legal advice, insurance, professional memberships

Tax note: Professional services are fully deductible business expenses

Marketing & Advertising

Examples: Website costs, Google Ads, business cards, vehicle signage

Tax note: Marketing expenses are fully deductible

Training & Education

Examples: Certification courses, safety training, skills development

Tax note: Training directly related to business is deductible

Receipt Photography Best Practices

Photograph immediately

Receipt ink fades over time. Take photo as soon as you get the receipt.

Good lighting and focus

Clear photos are essential for tax purposes. HMRC may require readable receipts.

Include both sides

Some receipts have important details on the back (warranty terms, VAT breakdowns).

Store physical receipts temporarily

Keep originals for 6 months in case digital copy isn't clear enough.

Capture card payment details

Bank statement matching is easier with card payment receipts.

Mobile Expense Entry

Open Toolfy on phone

Use mobile app installed on your phone's home screen.

Go to Expenses

Tap 'Expenses' from main menu or use quick action button.

Tap 'Add Expense'

Camera opens automatically for receipt capture.

Take receipt photo

Center receipt in frame, ensure good lighting, tap capture button.

Review auto-filled data

AI reads receipt and fills in date, amount, merchant automatically.

Choose category and save

Select appropriate category from dropdown and tap save.

Job Costing Benefits

Linking expenses to specific jobs provides:

Accurate job profitability

Link materials and fuel to specific jobs to see true profit margins.

Customer billing

Bill customers for materials used on their jobs with receipt backup.

Better estimates

Historical expense data improves accuracy of future quotes.

Job cost analysis

Compare estimated vs actual costs to improve bidding process.

Annual Tax Deduction Potential

Fuel and mileage£3,000-8,000 per year typical for field service businesses

Tools and equipment£1,000-3,000 per year depending on tool purchases

Materials and supplies£2,000-6,000 per year for active service businesses

Professional services£500-1,500 per year (accountant, insurance, memberships)

Training and certification£200-800 per year for skills development

Expense Reporting Features

•Monthly expense summaries by category

•Annual totals for tax return preparation

•Job-specific expense reports for customer billing

•VAT reclaim calculations and reporting

•Mileage logs with automatic rate calculations

•Receipt storage with search and filtering

Common Mistakes to Avoid

❌ Not photographing receipts immediately

Lost receipts mean lost tax deductions worth hundreds of pounds annually.

❌ Poor receipt photo quality

HMRC may reject unclear receipts during tax inspections.

❌ Missing expense categories

Uncategorized expenses are harder to claim and may be questioned.

❌ Not linking to jobs

Can't bill customers for materials or track true job profitability.

❌ Forgetting mileage tracking

Vehicle expenses are often the largest deduction opportunity.

Best Practices for Maximum Deductions

•Photograph every business receipt, no matter how small the amount

•Categorize expenses immediately while you remember what they're for

•Link material expenses to specific jobs for accurate costing

•Review expenses weekly to ensure nothing is missed

•Set up automatic mileage tracking for vehicle expenses

•Export expense reports monthly for accountant or bookkeeper

HMRC Compliance & Record Keeping

Legal Requirements:

• Keep all receipts for 5 years after tax return deadline

• Receipts must be legible and show date, amount, and merchant

• Digital copies are acceptable if clearly readable

• Business purpose must be demonstrable for each expense

Integrating with Accounting Software

Export Options:

• QuickBooks format: Direct import with categories mapped correctly

• Xero integration: Expense data syncs with receipt images

• CSV export: Works with any accounting software or Excel

• PDF reports: Professional summaries for accountant review

Export Expense Reports

Export expense data for accounting software or tax preparation

Link Expenses to Jobs

Track job profitability with expense allocation

Still need help?

Our support team responds within 2 hours during business hours.

Contact Support

Track Business Expenses

Track fuel, materials, equipment, and other business expenses. Upload receipts and maximize your tax deductions.

← Back to Help Center

Adding Expenses (2 minutes)

Go to Expenses → Add Expense

Click "Expenses" in left sidebar, then "Add Expense" button.

Upload receipt photo

• Take photo with phone camera or upload from computer

• Clear, readable image of entire receipt

• Include receipt date, merchant, and total amount

• Multiple photos if receipt is long or torn

Fill in expense details

• Date: When expense was incurred (auto-filled from receipt)

• Amount: Total spent including VAT (auto-filled from receipt)

• Category: Fuel, Materials, Equipment, etc.

• Merchant: Where you bought it (auto-filled from receipt)

• Description: What it was for (optional but helpful)

Link to job (optional)

If expense is for a specific job, link it for accurate job costing and client billing.

Save expense

Expense is saved with receipt attached and ready for tax deduction reporting.

Tax Savings:Proper expense tracking typically saves £3,000-8,000 annually in tax deductions for service businesses.

Expense Categories & Tax Treatment

Vehicle & Fuel

Examples: Petrol, diesel, parking fees, congestion charge, vehicle maintenance

Tax note: Business mileage and fuel are fully deductible

Materials & Supplies

Examples: Parts, tools, safety equipment, cleaning supplies, office supplies

Tax note: Materials for customer jobs are fully deductible

Equipment

Examples: Tools, machinery, computers, phones, software subscriptions

Tax note: Equipment over £500 may need to be depreciated

Professional Services

Examples: Accountant fees, legal advice, insurance, professional memberships

Tax note: Professional services are fully deductible business expenses

Marketing & Advertising

Examples: Website costs, Google Ads, business cards, vehicle signage

Tax note: Marketing expenses are fully deductible

Training & Education

Examples: Certification courses, safety training, skills development

Tax note: Training directly related to business is deductible

Receipt Photography Best Practices

Photograph immediately

Receipt ink fades over time. Take photo as soon as you get the receipt.

Good lighting and focus

Clear photos are essential for tax purposes. HMRC may require readable receipts.

Include both sides

Some receipts have important details on the back (warranty terms, VAT breakdowns).

Store physical receipts temporarily

Keep originals for 6 months in case digital copy isn't clear enough.

Capture card payment details

Bank statement matching is easier with card payment receipts.

Mobile Expense Entry

Open Toolfy on phone

Use mobile app installed on your phone's home screen.

Go to Expenses

Tap 'Expenses' from main menu or use quick action button.

Tap 'Add Expense'

Camera opens automatically for receipt capture.

Take receipt photo

Center receipt in frame, ensure good lighting, tap capture button.

Review auto-filled data

AI reads receipt and fills in date, amount, merchant automatically.

Choose category and save

Select appropriate category from dropdown and tap save.

Job Costing Benefits

Linking expenses to specific jobs provides:

Accurate job profitability

Link materials and fuel to specific jobs to see true profit margins.

Customer billing

Bill customers for materials used on their jobs with receipt backup.

Better estimates

Historical expense data improves accuracy of future quotes.

Job cost analysis

Compare estimated vs actual costs to improve bidding process.

Annual Tax Deduction Potential

Fuel and mileage£3,000-8,000 per year typical for field service businesses

Tools and equipment£1,000-3,000 per year depending on tool purchases

Materials and supplies£2,000-6,000 per year for active service businesses

Professional services£500-1,500 per year (accountant, insurance, memberships)

Training and certification£200-800 per year for skills development

Expense Reporting Features

•Monthly expense summaries by category

•Annual totals for tax return preparation

•Job-specific expense reports for customer billing

•VAT reclaim calculations and reporting

•Mileage logs with automatic rate calculations

•Receipt storage with search and filtering

Common Mistakes to Avoid

❌ Not photographing receipts immediately

Lost receipts mean lost tax deductions worth hundreds of pounds annually.

❌ Poor receipt photo quality

HMRC may reject unclear receipts during tax inspections.

❌ Missing expense categories

Uncategorized expenses are harder to claim and may be questioned.

❌ Not linking to jobs

Can't bill customers for materials or track true job profitability.

❌ Forgetting mileage tracking

Vehicle expenses are often the largest deduction opportunity.

Best Practices for Maximum Deductions

•Photograph every business receipt, no matter how small the amount

•Categorize expenses immediately while you remember what they're for

•Link material expenses to specific jobs for accurate costing

•Review expenses weekly to ensure nothing is missed

•Set up automatic mileage tracking for vehicle expenses

•Export expense reports monthly for accountant or bookkeeper

HMRC Compliance & Record Keeping

Legal Requirements:

• Keep all receipts for 5 years after tax return deadline

• Receipts must be legible and show date, amount, and merchant

• Digital copies are acceptable if clearly readable

• Business purpose must be demonstrable for each expense

Integrating with Accounting Software

Export Options:

• QuickBooks format: Direct import with categories mapped correctly

• Xero integration: Expense data syncs with receipt images

• CSV export: Works with any accounting software or Excel

• PDF reports: Professional summaries for accountant review

Export Expense Reports

Export expense data for accounting software or tax preparation

Link Expenses to Jobs

Track job profitability with expense allocation

Still need help?

Our support team responds within 2 hours during business hours.

Contact Support

Track Business Expenses

Adding Expenses (2 minutes)

Expense Categories & Tax Treatment

Vehicle & Fuel

Materials & Supplies

Equipment

Professional Services

Marketing & Advertising

Training & Education

Receipt Photography Best Practices

Photograph immediately

Good lighting and focus

Include both sides

Store physical receipts temporarily

Capture card payment details

Mobile Expense Entry

Open Toolfy on phone

Go to Expenses

Tap 'Add Expense'

Take receipt photo

Review auto-filled data

Choose category and save

Job Costing Benefits

Accurate job profitability

Customer billing

Better estimates

Job cost analysis

Annual Tax Deduction Potential

Expense Reporting Features

Common Mistakes to Avoid

❌ Not photographing receipts immediately

❌ Poor receipt photo quality

❌ Missing expense categories

❌ Not linking to jobs

❌ Forgetting mileage tracking

Best Practices for Maximum Deductions

HMRC Compliance & Record Keeping

Integrating with Accounting Software

Export Options:

Related Articles

Export Expense Reports

Link Expenses to Jobs

Still need help?

Track Business Expenses

Adding Expenses (2 minutes)

Expense Categories & Tax Treatment

Vehicle & Fuel

Materials & Supplies

Equipment

Professional Services

Marketing & Advertising

Training & Education

Receipt Photography Best Practices

Photograph immediately

Good lighting and focus

Include both sides

Store physical receipts temporarily

Capture card payment details

Mobile Expense Entry

Open Toolfy on phone

Go to Expenses

Tap 'Add Expense'

Take receipt photo

Review auto-filled data

Choose category and save

Job Costing Benefits

Accurate job profitability

Customer billing

Better estimates

Job cost analysis

Annual Tax Deduction Potential

Expense Reporting Features

Common Mistakes to Avoid

❌ Not photographing receipts immediately

❌ Poor receipt photo quality

❌ Missing expense categories

❌ Not linking to jobs

❌ Forgetting mileage tracking

Best Practices for Maximum Deductions

HMRC Compliance & Record Keeping