Carer expenses and Self Assessment: what you can claim

The golden rule

An expense is allowable if it is 'wholly and exclusively' for your business. Something used for both work and personal life — like your phone — can be claimed in part, in proportion to business use. When in doubt, keep the receipt and note what it was for.

Expenses most carers can claim

The everyday allowable expenses for a self-employed carer usually include:

• Mileage between clients — 45p per mile for the first 10,000 business miles in a tax year, 25p after that (note: travel from home to your first client and home from your last can be a grey area if you have no fixed workplace; many carers claim all inter-client mileage)
• Training courses and certificates — moving and handling, medication, first aid, safeguarding refreshers
• Business insurance — public liability and professional indemnity premiums
• DBS checks and Update Service subscriptions
• PPE, uniforms and work clothing — gloves, aprons, and any clothing with your branding
• Phone and internet — the business proportion of your bill
• Professional fees and subscriptions — including your Care-Solo membership, ICO data protection fee, and any union or professional body fees
• Stationery, postage and small equipment used for your work

What you usually can't claim

Everyday clothing you could wear outside work, meals during a normal working day, and fines (including parking fines) are not allowable. Neither is the cost of your initial DBS if it was needed before you started trading — though most advisers treat it as a pre-trading expense, which can still be claimed. If an expense is unusual, ask an accountant before claiming it.

Keep records as you go

HMRC can ask to see evidence for anything you claim, and you must keep records for at least 5 years after the 31 January filing deadline. The easiest system is the one you'll actually use: photograph receipts the day you get them, log mileage after each round of visits, and record expenses weekly rather than reconstructing a year in January.

Care-Solo's My Finances page lets you log expenses and mileage as they happen and export everything at year end, so your tax return takes minutes instead of a weekend.

How Self Assessment works, year by year

The rhythm of the tax year for a sole trader:

• 6 April – 5 April: the tax year. You record all income and expenses in this window
• 5 October: deadline to register for Self Assessment if this is your first year
• 31 January: online tax return deadline, and the day you pay your tax bill
• 31 July: second 'payment on account' deadline if your previous bill was over £1,000

How much tax to set aside

A widely used rule of thumb for carers is to set aside 20–25% of everything you earn into a separate savings pot. Your actual bill depends on your total income and expenses: you pay income tax and Class 4 National Insurance on your profit above the personal allowance, plus small Class 2 contributions in some cases.

Care-Solo's pay and tax calculator estimates your bill from your real invoices and expenses, so there are no surprises in January — and its reminders flag the key Self Assessment dates before they arrive.