SA103 box 26 — other allowable business expenses

Other Allowable Expenses

A catch-all for legitimate business costs that don't fit neatly elsewhere. The key test is always: was the cost incurred wholly and exclusively for business purposes?

What you CAN claim

  • Subscriptions to trade journals and professional publications
  • Gifts to clients (up to £50 per person per year, with your business name on them)
  • Charitable donations where you receive something in return (sponsorship)
  • Bad debts that you've included as income but can't recover

What you CANNOT claim

  • Personal gifts
  • Political donations
  • Client entertaining of any kind
  • Anything with a personal element

Common examples for sole traders

Trade journal subscriptionBranded gift (under £50) to a clientBad debt written offSponsorship of a local eventCharitable donation with business benefit

Practical tips

  1. 1

    When in doubt, ask: 'Was this cost incurred wholly and exclusively for business?' HMRC's test is strict

  2. 2

    Keep notes on unusual expenses explaining the business purpose

  3. 3

    A qualified accountant can advise on borderline cases

View HMRC guidance on GOV.UK

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