Could You Be Missing Out on Everyday Expense Claims?

Many small business owners, freelancers, and sole traders across the UK are unknowingly leaving money on the table by not claiming for this common, everyday business expense. While you’re likely tracking major costs such as equipment and rent, it’s easy to overlook smaller, frequent charges that could significantly reduce your tax bill. The good news? A simple change to your bookkeeping habits could save you hundreds each year.

Claiming for Mobile Phone Costs

One of the most commonly overlooked expenses is your mobile phone usage. If you’re using your phone for business calls, emails, or even just coordinating with clients via messaging apps, a portion of your mobile bills is a legitimate business expense.

Despite this, many business owners either forget or fear incorrectly claiming this expense. Whether you’re on a contract or pay-as-you-go plan, HMRC allows you to claim the business-use portion of your mobile costs. The key lies in determining the proportion used for business versus personal communication—and record-keeping is essential.

How to Calculate the Business Portion

Start by examining your recent phone bills. If around 40% of your time is spent on business-related calls and activities, you can reasonably apportion 40% of your mobile costs as a business expense. This method is especially helpful for sole traders without separate business phones.

Keeping a usage diary or downloading an app to track your call and data activity can provide the evidence you need if HMRC ever asks for justification.

Other Overlooked Everyday Expenses

While mobile costs top the list, they’re not the only everyday business expenses that commonly go unclaimed. Consider these frequently missed deductions:

• Home office usage: If you work from home, even just for part of the week, a portion of your rent, council tax, electricity, and broadband can be claimed.
• Parking fees and tolls: If you drive to meetings or worksites, don’t forget to keep receipts and logs for these minor but frequent costs.
• Bank charges and payment processing fees: Charges for maintaining business bank accounts or payment platforms like Stripe or PayPal are allowable expenses.
• Postage and shipping: Sending out documents or products? You can deduct those costs too.

Each individually may seem minor, but together, they can greatly impact your tax efficiency.

Why Attention to Detail Pays Off

The reason so many business owners miss out on claiming these expenses is usually down to lack of time or awareness. By making it a habit to consistently track and process every cost—no matter how minor—you not only reduce your taxable income but gain a clearer view of your business’s financial health.

Using cloud accounting tools such as Receipt Bank, Xero, or QuickBooks can help automate expense tracking. These apps allow you to scan receipts, tag categories, and even automate recurring entries—freeing up your time while ensuring you don’t miss deductible costs.

Make Expense Tracking Part of Your Routine

Expense claiming doesn’t have to be a monthly headache. Develop a system—daily, weekly, or monthly—that suits your schedule so you keep on top of your receipts and mileage logs. By doing so, you not only protect your business against unnecessary tax payments but also make year-end accounting far less stressful.

Tax savings aren’t just about big deductions; they’re about consistency. Stay diligent and benefit from the full range of allowances available to you.

Not Sure What to Claim?

At DSR Ashburns Accountants, we help small business owners and entrepreneurs navigate the complex world of allowable expenses with tailored advice and tech-backed solutions. Need help reviewing your expense claims? Get in touch for a consultation and see how much you could save.