Allowable Expenses for UK Directors: The Complete Guide
Every expense category a UK solo director can legitimately claim through their company, with HMRC guidance references and practical tips.
How director expenses work
As a director, you can either: (1) have the company pay costs directly (e.g., company credit card), or (2) pay personally and reclaim from the company via an expenses claim. Either way, the cost sits in the company's accounts as a deductible expense — reducing taxable profit and therefore corporation tax.
Technology and equipment
Computers, monitors, keyboards, webcams, headsets, and software are fully deductible when used for business. If purchased outright, claim via Annual Investment Allowance for 100% first-year deduction. Monthly subscriptions (Microsoft 365, Adobe, cloud tools) are revenue expenses — deductible in full when paid.
Home office
Two methods: HMRC flat rate of £6/week (£312/year, no receipts needed, minimum 25 hours/month working from home) or the apportioned method (actual costs × business rooms/total rooms). Use the Home Office calculator to compare which saves more corporation tax in your situation.
Travel and mileage
Mileage in your personal vehicle for business journeys (not commuting to a regular workplace) is reimbursed at HMRC's approved mileage rates: 45p/mile for the first 10,000 miles, 25p/mile thereafter. No income tax or NI on payments at the approved rate.
Professional development
Training courses, conferences, technical books, and professional subscriptions directly related to your current business are deductible. CIPD, BCS, ICE, Law Society membership fees — all allowable if relevant to your trade.
Insurance
Professional indemnity insurance, public liability insurance, and employers' liability insurance are fully deductible business costs. Personal life insurance or income protection are not — unless structured specifically as a relevant life policy through the company.
What to avoid claiming
Client entertaining, personal clothing (even if you only wear it for work), fines, and anything with a personal element that cannot be fairly apportioned. HMRC is alert to personal costs flowing through company accounts.
Related calculators
Frequently asked questions
Can I claim clothing as an expense?
Can I claim a mobile phone through the company?
Do I need receipts for all expenses?
Disclaimer: This guide is for general information only and does not constitute tax or legal advice. Tax rules change — always verify rates and thresholds with HMRC or a qualified accountant before making decisions. HMRC website