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Expense Categories

This reference lists all expense categories you can use in Calceum, with guidance on what to include.

Direct costs of producing what you sell.

Include:

  • Stock and raw materials
  • Direct labour costs for producing goods
  • Packaging materials
  • Freight and delivery costs for stock

Don’t include:

  • General overheads
  • Administrative costs

Specific to construction businesses.

Include:

  • Materials for construction projects
  • Subcontractor labour
  • Equipment hire for specific jobs
  • Site costs

Keeping assets in working condition.

Include:

  • Equipment repairs
  • Vehicle maintenance and servicing
  • Building repairs
  • Replacement parts

Don’t include:

  • Improvements or upgrades (these are capital expenditure)
  • Initial purchase costs

Day-to-day running costs.

Include:

  • Bank charges and fees
  • Software subscriptions
  • Office supplies
  • Postage
  • Business insurance
  • Professional indemnity insurance

Promoting your business.

Include:

  • Online advertising
  • Print advertising
  • Website hosting and maintenance
  • Business cards and brochures
  • Trade show costs

Record but don’t claim:

  • Client meals and hospitality
  • Event tickets for clients
  • Corporate gifts over £50

Professional services for your business.

Include:

  • Accountant fees
  • Legal fees (business-related)
  • Professional body subscriptions
  • Consultancy fees

Don’t include:

  • Legal costs for buying property (capital)
  • Fines or penalties

Costs of business borrowing.

Include:

  • Interest on business loans
  • Interest on business overdrafts
  • Hire purchase interest
  • Finance arrangement fees

Don’t include:

  • Capital repayments (only the interest portion)
  • Personal loan interest

Anything not fitting other categories.

Include:

  • Training courses (related to current business)
  • Books and publications
  • Protective clothing
  • Small tools and equipment

Costs of employing people.

Include:

  • Wages and salaries
  • Employer’s National Insurance
  • Pension contributions
  • Staff training
  • Recruitment costs

Business travel costs.

Include:

  • Business mileage (45p/mile for first 10,000 miles, 25p thereafter)
  • Public transport for business trips
  • Parking
  • Accommodation for business trips
  • Meals when travelling overnight

Don’t include:

  • Commuting to your regular workplace
  • Personal travel

Costs of business premises.

Include:

  • Rent
  • Business rates
  • Utilities (electricity, gas, water)
  • Cleaning
  • Security

Working from home: You can claim a proportion of home costs if you work from home. Either:

  • Simplified method: £6/week (no records needed)
  • Actual costs: Calculate business proportion of mortgage interest, rent, utilities, etc.

For landlords, allowable expenses include:

  • Fixing damage
  • Repainting
  • Replacing like-for-like fixtures
  • Letting agent fees
  • Property management fees
  • Advertising for tenants
  • Buildings insurance
  • Landlord insurance
  • Rent guarantee insurance
  • Mortgage interest (restricted to basic rate relief)
  • Loan arrangement fees
  • Ground rent and service charges
  • Council tax (when empty)
  • Legal fees for tenant disputes
  • Accountancy fees

Understanding the difference is important:

Revenue expenses (allowable):

  • Day-to-day running costs
  • Repairs that maintain current condition
  • Replacing like-for-like

Capital expenses (not directly allowable):

  • Buying assets
  • Improvements and upgrades
  • Initial setup costs

Capital expenses may qualify for capital allowances instead - these are claimed separately in your annual submission.


  1. Get receipts for everything over £10
  2. Photograph receipts - they fade over time
  3. Note the business purpose - especially for travel and entertainment
  4. Keep records for 5 years after the tax year ends

Need help categorising a specific expense? Contact support.