Ana Terhovanessian ACCA, Accounting Manager at Rapid Formations, a Companies House-approved company formation agent specialising in the registration of limited companies and LLPs, is encouraging tradespeople and small construction business owners to review their finances and ensure they are claiming all available tax reliefs following the Autumn Budget 2026.
The Budget serves as a useful reminder for construction SMEs and self-employed tradespeople to take stock of their finances, review their business expenses, and make sure they are maximising the tax reliefs available to them.
With rising costs continuing to affect businesses across the construction sector, understanding which expenses can be claimed can make a significant difference to taxable profits and overall financial stability. From travel and protective clothing to tools, subcontractors and professional services, many allowable expenses are regularly overlooked.
Ana Terhovanessian said: “For tradespeople, who often find themselves travelling between jobs, suppliers and customer sites, mileage costs can quickly accumulate. However, having a better understanding of which expenses they can claim for could make a real difference to their taxable profits and growth potential.
“Beyond mileage, tradespeople and small construction business owners can also claim for protective clothing, tools and equipment, business insurance, accountancy fees and subcontractor costs. These are all legitimate business expenses that can help to ease some of the financial pressures associated with running a business.”
Business mileage remains one of the most significant claimable expenses for many tradespeople. The approved mileage allowance can help offset the costs associated with travelling for work purposes, although journeys between home and a permanent workplace are generally excluded.
The construction industry also relies heavily on specialist protective clothing and safety equipment. Expenditure on items such as hard hats, steel-toe boots and high-visibility clothing may be claimable where they are required specifically for work purposes. However, everyday clothing that could be worn outside of work does not qualify.
Tools and equipment represent another substantial expense for many construction businesses. Smaller tools and routine equipment purchases can generally be treated as business expenses, while larger items that provide long-term value to the business may qualify for capital allowances. In many cases, business owners can also review previous years’ expenditure and ensure that eligible claims have not been missed.
For limited companies, labour costs can also provide valuable tax relief opportunities. Payments to subcontractors, specialist trades, temporary workers and agency staff can often be deducted from taxable profits. Similarly, direct employment costs, including wages, employer National Insurance contributions, pension contributions, recruitment fees, training and work-related equipment, may also qualify.
Professional services and insurance are further areas that can sometimes be overlooked. Subject to HMRC rules, costs such as accountancy and bookkeeping fees, professional advice, public liability insurance, professional indemnity insurance and cover for vehicles and tools may all be deductible business expenses. Maintaining accurate records, including invoices and policy documentation, remains essential to support any claims.
For business owners who regularly carry out administrative work from home, certain household costs may also be recoverable. Depending on the structure of the business, this could include a proportion of expenses relating to utilities, telecommunications, software, equipment and office supplies. As the rules differ between limited companies and sole traders, it is advisable to seek professional guidance before making claims.
Ana added: “The tax rules and requirements for small businesses continue to evolve, and it is encouraging to see that supporting enterprise remains a priority. However, it is important for business owners to recognise that good financial management goes beyond simply submitting a tax return on time.
“The Autumn Budget is always a significant moment for businesses across the UK. While it has not introduced any major new deductions for tradespeople this year, it should act as a timely reminder for small construction business owners to review their finances, understand their responsibilities and make sure they are taking full advantage of the tax-saving opportunities available to them.”
