You’re Overpaying Tax: 5 HMRC-Approved Expenses Most Subbies Ignore

You graft hard all week, deal with weather, delays, and clients… and then HMRC still takes a chunk before you even see your money. If you're working under CIS, chances are you're <strong>overpaying tax</strong> — not because of rates, but because you're missing legitimate expenses.

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CIS Tax · 5 min read ·

You’re Overpaying Tax: 5 HMRC-Approved Expenses Most Subbies Ignore
CIS Subcontractor Tax Expenses: 5 HMRC-Approved Claims You're Missing
CIS Subcontractors · HMRC Tax Guide 2024/25

5 Tax Expenses
CIS Subbies
Never Claim

Working under CIS? You're likely overpaying tax on tools, mileage and PPE — every single year. Here's exactly what HMRC allows, and how to stop leaving money on the table.

Free PDF checklist — no spam. Privacy policy.

HMRC doesn't care what you call an expense. The only rule that matters is whether it's "wholly and exclusively for the purpose of the trade". Miss that, and you lose money. Get it right, and you reduce your tax bill — legally, permanently.

01
Revenue Expense · Instant Write-Off

Small Tools & Consumables

Most subbies focus on big purchases and miss the small stuff entirely. These are revenue expenses — you deduct them in full, immediately. No depreciation, no spreading over years.

You can claim
  • Drill bits, blades, sanding discs
  • Sealants, adhesives, fillers
  • Gloves, masks, disposable PPE
Why it matters

These go straight off your tax bill in the same tax year. Track every receipt — even small ones add up fast across a full year on site.

↗ HMRC: Expenses if you're self-employed
Expenses
02
Capital Allowances · AIA

Power Tools

Common myth: expensive tools can't be claimed. That's wrong. Through Annual Investment Allowance (AIA), you can deduct 100% of the purchase cost in the same year — no waiting, no partial deductions.

You can claim
  • Drills, SDS hammers
  • Grinders, circular saws
  • Laser levels, measuring equipment
Common mistake
  • Not claiming at all
  • Assuming big items are excluded
  • Spreading claims over years unnecessarily
💡
Subbies who skip power tool claims are giving hundreds — sometimes thousands — to HMRC every year. AIA limit is currently £1 million. You won't hit it. HMRC AIA guidance →
Expenses
03
Maintenance · Most Overlooked

Tool Repairs & Servicing

One of the most missed categories. The logic is simple: you're not buying a new asset — you're maintaining your existing ability to earn. HMRC treats this as a fully deductible revenue expense.

You can claim
  • Tool repair costs
  • Annual servicing
  • Replacement parts (brushes, batteries, blades)
Rule of thumb

Repair = maintain current state → revenue expense (claim now). Upgrade = improve beyond original → capital allowance. When in doubt, get a receipt and log it.

Expenses
04
PPE Only · Know the Line

Protective Work Gear

This is where most people get it wrong. HMRC's test: could you realistically wear it outside work? If yes, it likely doesn't qualify. It must be specialist protective equipment — not ordinary clothing used for work.

You can claim
  • Hi-vis jackets & vests
  • Steel toe cap boots
  • Hard hats, goggles, ear defenders
  • Specialist gloves & kneepads
You cannot claim
  • Jeans, cargo trousers
  • Hoodies, sweatshirts
  • Regular jackets
  • Trainers (non-safety)
⚠️
HMRC's position: clothing that is "part of an everyday wardrobe" does not qualify even if only worn on site. EIM32455 guidance →
Expenses
05
Biggest Money-Loser · Track Everything

Mileage & Travel

Not a tool — but ignoring this is the single biggest financial mistake most subbies make. The key is understanding temporary vs. permanent workplace, because HMRC treats them very differently.

45p
per mile · first 10,000
25p
per mile · after 10,000

Temporary vs Permanent

Claimable Travelling between different job sites in a day
Claimable Travel to a temporary workplace (expected <24 months)
Claimable Travelling to pick up materials for a job
Not claimable Daily commute to a single, permanent site
Not claimable Personal journeys, even in a work vehicle
📍
The 24-month rule A workplace is "temporary" if you work there for less than 24 months. Once you know you'll be at a site for over 24 months, travel stops being claimable from that point. Log start dates on every contract.
HMRC EIM32075: temporary workplace →

The Brutal Truth

📋
Don't track
expenses
🧾
Forget what
they bought
🙈
Don't claim
at all
Overpaying tax — every single year.

Free CIS Expense
Checklist PDF

A single-page reference covering every claimable category — tools, mileage, PPE, repairs. Print it, keep it in the van.

  • All 5 expense categories in one page
  • HMRC references included
  • Mileage log template
  • Receipt tracking tips

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Common Questions

Yes. Small consumable tools are claimable as revenue expenses — deducted in full, immediately. Larger power tools qualify under Annual Investment Allowance (AIA), which currently allows 100% deduction in the year of purchase. You don't need to spread the cost over multiple years.
45p per mile for the first 10,000 business miles per tax year, then 25p per mile above that. Travel between different job sites and to temporary workplaces qualifies. The daily commute to a single permanent site does not. Keep a mileage log with dates, destinations and business purpose for every journey.
A workplace is temporary if you work there for less than 24 months and it is not the base of your business. Once you expect to be at a single site for more than 24 months, HMRC treats it as a permanent workplace and travel to it becomes a non-claimable commute. Log your start date on every contract. See HMRC EIM32075.
Only specialist protective equipment qualifies: hi-vis clothing, steel toe cap boots, hard hats, goggles, ear defenders and similar PPE. Regular clothing — jeans, hoodies, jackets, ordinary shoes — does not qualify even if you only wear it for work. HMRC's test is whether the clothing could reasonably be worn outside of a work context.
Under section 34 ITTOIA 2005, an expense is only deductible if it is incurred "wholly and exclusively for the purposes of the trade." If an expense has any personal element, it generally will not qualify. The exception is where a specific business portion can be clearly separated — for example, business calls on a personal phone bill.
Disclaimer: This article is for general information only and does not constitute tax advice. Tax rules depend on your individual circumstances, accounting method, and level of business use. Always consult a qualified accountant or tax adviser before making claims. HMRC guidance is available at gov.uk/self-employed-expenses. Rules correct as of the 2024/25 tax year.

CIS TAX GUIDE · 2024/25 · HMRC-APPROVED EXPENSES

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