Allowable expense
An allowable expense is a cost you can take off your income before tax. To qualify it has to be incurred wholly and exclusively for the work, which rules out anything with a private benefit attached.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
The test is not "was it useful". It is whether the cost exists because of the work and for no other reason.
What it means for your money
An allowable expense saves you tax at your marginal rate, not pound for pound. A basic rate driver spending £100 on an allowable cost is about £29.00 better off after income tax and Class 4 National Insurance, not £100 better off. That is worth knowing before buying something for the tax relief.
Where to read more
Allowable expenses, the full list.
Sources
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