Allowable Expenses for Self-Employed Decorators (2026/27)

What does HMRC's "wholly and exclusively" rule mean for a self-employed decorator?

HMRC's "wholly and exclusively" rule, set out in HMRC Business Income Manual BIM37007, is the single test every allowable expense must pass: the expenditure must be wholly and exclusively for the purposes of the trade. Nothing more, nothing less.

Two examples bracket it for a decorator. Public liability insurance passes it without argument: there is no personal reason to hold that policy; it exists because the business does. A personal detour on the way back from a job fails it: the fuel for the business portion of the journey remains claimable, but the personal portion does not. Almost every expense question in this guide comes back to the same test. If the cost has a personal purpose mixed in, only the business proportion is claimable, and you need a record that shows how you split it.

What materials and consumables can a self-employed decorator claim?

GOV.UK confirms that stock or raw materials bought to carry out the work are claimable as allowable expenses. For a decorator that means paint, primer, filler, tape, dust sheets, rollers, brushes, drop cloths and any other consumable used on jobs.

The rule is straightforward: if you buy it to use on a customer's job and it gets used up in the process, it is an allowable expense. Keep the receipts and record which job the materials went to. One compliance note for decorators approaching a higher turnover: once your gross income exceeds the GOV.UK VAT registration threshold of £90,000, as of July 2026, VAT registration becomes compulsory, which changes how input tax on materials is handled. The allowable-expense rule itself is not altered, but the mechanics of claiming shift once you are registered. If you are not near that threshold, this is background awareness rather than an immediate concern.

What can a self-employed decorator claim for tools, equipment and scaffold tower hire?

Tools and equipment are claimable through one of two routes, both confirmed by GOV.UK, and the route depends on how long an item is expected to last.

Items expected to last under 2 years (most brushes, rollers, smaller consumable tools) go straight through as an allowable expense in the year of purchase, per GOV.UK. Equipment expected to last longer (a good-quality spray unit, a commercial paint mixer, a scaffold tower you own) normally goes through capital allowances. Most sole traders on cash-basis accounting do not use capital allowances for tools and plant at all; GOV.UK confirms that under cash basis, capital allowances are restricted to business cars, so other plant and machinery goes as expenses directly.

Can you claim your van as a business expense, and does it matter whether it is a van or a car?

Yes, and the van-or-car distinction matters more than most decorators realise. GOV.UK offers 2 methods for vehicle costs, and the vehicle type determines what is available to you.

Method 1: simplified mileage rate. From 6 April 2026, GOV.UK sets the approved mileage rate at 55p/mile for the first 10,000 business miles in the tax year, then 25p/mile above that, per GOV.UK, from 6 April 2026. This covers all vehicle running costs; you cannot also claim fuel, insurance or road tax on top. One rate note: the old 45p figure still appears in some third-party guides and is now wrong. The current rate applies from 6 April 2026.

Method 2: actual running costs. GOV.UK allows the business-use proportion of insurance, repairs, servicing, fuel, parking, hire charges, vehicle tax and breakdown cover as allowable expenses. You need to track business versus personal miles to apportion correctly.

The practical lock-in: once you use the simplified mileage rate for a vehicle, GOV.UK requires you to continue using it for that vehicle. You cannot switch to the mileage rate if you have already claimed capital allowances on the same vehicle.

The van-or-car distinction is where the bigger difference sits. Vans, classified as goods vehicles, qualify for the Annual Investment Allowance in full, up to £1 million per accounting period, per GOV.UK. Cars do not qualify for AIA. For most decorators using the mileage rate this is academic, because the mileage rate replaces capital allowances entirely. But a decorator who buys a van outright and uses traditional accounting rather than cash basis can deduct the full purchase cost as a capital allowance in the year of purchase. The right accounting method depends on your circumstances; the point is that a van gives you the option and a car does not.

Which workwear and clothing costs can a self-employed decorator claim?

GOV.UK confirms uniforms and protective clothing are claimable; everyday clothing is not, even if you wear it for work. The rule is short but the trap is real.

What passes: a company top or polo shirt bearing a recognisable business logo, overalls, safety boots, safety goggles, hi-vis vests, hard hats and any other PPE worn because the job requires it. These are claimable because they serve a clear business purpose and, in the case of PPE, because the job demands them.

What fails: ordinary clothing worn on site, paint-stained trousers included. GOV.UK's exact language is "you cannot claim for everyday clothing, even if you wear it for work." The test is whether the clothing could reasonably be worn away from the job. A set of old trousers you wear for painting cannot pass it. A branded company top with your logo printed on it can. The distinction sounds fine but it costs decorators money every year. Buy branded workwear, keep the receipt, note the logo on the invoice.

Can a self-employed decorator claim for working from home?

Yes. GOV.UK provides 2 routes and you choose one per tax year.

Route 1: simplified expenses flat rate. GOV.UK sets the working-from-home flat rate by hours per month: 25 to 50 hours a month, £10; 51 to 100 hours, £18; 101 or more hours, £26. The minimum is 25 hours per month; below that, the flat rate is not available for that month.

GOV.UK, Simpler income tax: simplified expenses: working from home. Accessed July 2026.

Route 2: proportionate actual costs. A calculated share of home costs (rent or the mortgage interest element, council tax, heating, lighting and broadband), divided by the number of rooms and the hours worked from home. This takes more record-keeping but may produce a larger deduction for someone who uses a dedicated room.

Neither route automatically covers phone and internet costs. The FAQ holds that detail; the short version is that phone and internet sit outside the flat rate and must be claimed separately.

What can you claim for insurance, professional fees and bank charges?

GOV.UK confirms any insurance policy for your business is claimable, including public liability. That covers public liability, tool insurance, professional indemnity and the business-use portion of van insurance. If your van also serves personal journeys, only the proportion corresponding to business use is claimable.

Professional fees are claimable where they are incurred for business reasons, per GOV.UK: accountancy, legal fees and surveyor costs that relate to the business. The FAQ holds back one exception that catches decorators out at Self Assessment time.

Bank charges, overdraft charges and the interest portion of a business loan are claimable as allowable expenses under GOV.UK's legal and financial costs guidance. Loan capital repayments are not claimable; only the interest element is. If your finances are run through a dedicated business account, the charges on that account are fully claimable; if you use a personal account for business transactions, only the portion attributable to business use qualifies.

What can you claim for phone, internet, software and marketing?

Phone and internet: the business-use proportion is claimable as an allowable expense, per GOV.UK; the personal portion is not. Most sole-trader decorators use a single phone for both; you need a reasonable apportionment based on a percentage of the bill rather than a month you happened to make more calls.

Software: GOV.UK confirms subscription-based software is claimable as an allowable expense regardless of how long it is in use. Software licences expected to last under 2 years are also claimable as expenses rather than through capital allowances. Both rules sit under GOV.UK's office, property and equipment expenses page.

Marketing: GOV.UK allows advertising in newspapers or directories, mailshots, website running costs and sample materials as claimable expenses. Client entertaining and event hospitality are not claimable, with no exceptions. If you take a potential customer to lunch or to a trade event, that cost sits outside the rules. If you pay to put an ad in a local directory or run a website for the business, those costs are in.

What can you claim for training, subscriptions and certifications?

GOV.UK allows training costs where the course relates to your current business. The test is the existing trade: a refresher course on specialist finishes, a health and safety course required for site access, a colour-theory course that applies to the work you already do. These pass. A course on a different trade or a general business qualification that moves you into new territory does not pass the same test.

Trade body membership directly related to your business is claimable under GOV.UK's subscriptions rule. Trade and professional journals directly related to your business are also claimable. Gym memberships and personal subscriptions are not claimable under any route. The FAQ covers specific examples of certifications and memberships that qualify; this section states only the general rules.

Can a self-employed decorator claim for staff wages and subcontractor costs?

Wages paid to employees are claimable as an allowable expense, per GOV.UK's allowable expense categories overview. If you take on a labourer or a second decorator as an employee, what you pay them in wages comes off your taxable profit.

Subcontractor costs are claimable as a business expense under the same categories. If you bring in another decorator as a subcontractor to help deliver a job, the amount you pay them is an allowable cost. The Construction Industry Scheme imposes separate obligations on how you handle deductions from those payments; the detail on deduction rates and registration requirements sits in the CIS for decorators guide, which covers when CIS applies to decorating work and what it means for your payments. This section confirms only that the cost itself is claimable.

What is the £1,000 trading allowance, and should a self-employed decorator use it?

GOV.UK allows sole traders to deduct a flat £1,000 from gross income instead of claiming actual expenses. This is the trading allowance. If you use it, you cannot also claim actual expenses for the same period. It is one route or the other, never both.

For almost any working decorator, actual expenses will substantially exceed £1,000. Materials alone on a mid-size job can clear that figure, and van running costs, insurance and tools add on top. Compare your estimate of actual annual business costs to £1,000. If your actual costs are higher, the actual-expenses route puts more money back. The £1,000 flat suits someone with low business costs, not someone running a van and buying materials every week.

One note on the calculation: the comparison is per tax year, not per job. You are looking at your total annual business expenditure against £1,000, not a single job's materials bill. For most decorators, the actual-expenses route wins by a meaningful margin.

What can a self-employed decorator not claim?

GOV.UK is explicit on the non-allowable categories. Client entertaining and event hospitality: not claimable. Fines and penalties: not claimable. Everyday clothing worn for work: not claimable (covered in the workwear section above). The personal portion of any mixed-use expense, phone, internet or van: not claimable. Loan capital repayments: not claimable; only the interest element is. Non-business driving and commuting: not claimable.

The full non-allowable list from GOV.UK also includes anything that fails the wholly and exclusively test from the first section. If a cost serves a personal purpose, even partially, the personal portion is out.

If you are uncertain about a specific cost, GOV.UK's self-employed expenses tool at gov.uk/expenses-if-youre-self-employed is the authoritative check. It covers the majority of common queries and reflects current rules.