HMRC sharpens focus on personal expenditure in tax returns

HMRC is expanding its efforts to ensure that only genuine business costs are claimed in self-assessment tax returns.

Following a recent trial that generated over £27 million in additional tax revenue, the new campaign will focus on areas where personal and business use overlap, such as vehicles, home offices, and travel – to confirm that expenses are apportioned accurately and supported by clear records.

The principle remains straightforward: expenses must be “wholly and exclusively” for business purposes to qualify for tax relief. In practice, that can mean making careful adjustments where there is any private use.

For sole traders, partners, and landlords, this is a timely reminder to review expense claims and ensure they are accurate, consistent, and well-documented.

At Verallo, we help clients navigate these rules with confidence, supporting accurate reporting while making sure all legitimate claims are maximised.

For support or to ask questions around your tax obligations, contact our experts.