How to Keep Track of Decorating Business Expenses

Tracking your decorating business expenses properly is essential for two reasons: it reduces your tax bill by ensuring you claim everything you are entitled to, and it tells you your true profit on every job. Yet many decorators track expenses poorly — or not at all — and end up paying more tax than they need to.

Every allowable expense you log reduces your profit figure, which reduces your tax bill. If you are a sole trader paying 20% income tax, every £100 of expenses you fail to log costs you £20 in extra tax. Over a year, untracked expenses can cost you hundreds or thousands of pounds.

This guide explains what expenses decorators can claim, how to track them effectively and the tools that make it easy.

What Expenses Can Decorators Claim?

Decorators can claim a wide range of business expenses against their income. Common categories include: materials and paint, fuel and van costs, tools and equipment, insurance (public liability, tool cover, van insurance), phone and internet, accounting and professional fees, marketing and advertising, software and subscriptions, protective clothing and PPE, and training and qualifications.

If you use your home as an office, you can claim a portion of your household costs — heating, lighting, internet — based on the space used for business. If you use your van for both business and personal use, you can claim the business portion of fuel, insurance, servicing and depreciation.

Keep receipts for everything. HMRC requires you to keep records of all business expenses for at least 5 years after the relevant tax year. Digital records are acceptable and far easier to manage than paper.

How to Track Expenses Effectively

The key to effective expense tracking is to do it regularly — ideally weekly, not at year-end. Log expenses as you incur them, while the details are fresh and the receipts are available. This takes minutes per week rather than days at year-end.

Categorise every expense — Materials, Fuel, Subcontractor, Equipment, Other — so you can see where your money is going and your accountant can easily prepare your tax return. Keep a note of what each expense was for, not just the amount.

If you use your van for business, track your mileage. You can claim either a flat rate per business mile (currently 45p per mile for the first 10,000 miles) or the actual costs of running the van. Most decorators find the flat rate simpler.

Using Software to Track Expenses

Expense tracking software saves hours of admin and ensures you never lose a receipt or forget an expense. Look for software that lets you log expenses against specific jobs, so you can see the true cost and profit of each project.

Trade Assist lets you log expenses against each job — materials, fuel, subcontractor costs and equipment — with categories and descriptions. The profit calculation is visible on every job, so you can see which types of work are most profitable.

At year-end, the Tax Export feature produces a complete summary of all your expenses, categorised and totalled, ready for your accountant or for Making Tax Digital submission. No more scrambling to find receipts in January.

Common Expense Tracking Mistakes to Avoid

The most common mistake is not tracking small expenses — parking, small tool purchases, consumables. These add up over a year and are all tax-deductible. Log everything, no matter how small.

Another common mistake is mixing personal and business expenses. If you use the same bank account for both, it is hard to separate them at year-end. Open a separate business bank account — it makes accounting far easier and gives you a clear picture of your business finances.

Finally, do not forget to track mileage. Business miles are a significant expense for decorators who travel between jobs. At 45p per mile, 5,000 business miles per year is worth £2,250 in tax-deductible expenses.

Frequently Asked Questions

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