Can I claim a lock-up, storage unit or tool hire as a business expense?

Yes. In 2026-27, rent, rates, insurance and power on a lock-up or storage unit used for the business are allowable, and in our reading so is tool and plant hire. Only the business share of mixed-use storage counts.

Most trades need somewhere to keep tools, materials or the van, and few own every machine they use. The rules below follow GOV.UK's guide to self-employed expenses, the cash basis guide, the tax return notes, the Income Tax (Trading and Other Income) Act 2005 and HMRC's manuals, as checked on 17 October 2026.

Renting a lock-up, garage, yard or storage unit

GOV.UK lists rent for business premises, business and water rates, utility bills, property insurance and security as costs you can claim. The notes to the full self-employment pages put rent for business premises, business and water rates, light, heat, power, property insurance and security together in one box.

GOV.UK does not name lock-ups or self-storage. In our reading, a garage, yard or storage unit you rent to keep tools, materials or the van is business premises, so the rent and running costs on it count when it is used for the business.

Mixed personal and business storage

GOV.UK says that for something used for both business and personal reasons, you can only claim the business costs, and that you cannot claim for any non-business use of premises. Section 34 of the 2005 Act bars costs not incurred wholly and exclusively for the trade, but allows an identifiable part or proportion that is.

The tax return notes say the non-business part or private use of business premises, and the cost of buying business premises, are disallowable. In our reading, splitting by floor space is a reasonable way to find the business share of a unit.

A garage at home is different

A garage or outbuilding that is part of your home is not separately rented premises. HMRC's manual says that where part of the home is used solely for the trade, part of costs such as Council Tax, insurance and rent can be deducted, normally split by area and time. A sole trader cannot charge rent to their own business. The tax return notes say you can only claim the business proportion, or use the simplified expenses flat rate instead. Our guide to working from home covers both methods.

Hiring tools, plant or a van

GOV.UK does not list tool or plant hire by name. In our reading, a hire charge pays for using equipment you do not own, so it is a running cost. Under the cash basis you count it when you pay it.

Buying is different. Under the cash basis, the standard way to record income and expenses, GOV.UK says equipment you buy to keep and use is claimed as a normal allowable expense. Under traditional accounting it goes through capital allowances, explained in our guide to the annual investment allowance. Our tools and workwear guide covers buying tools.

The tax return notes list hire charges in box 20, car, van and travel expenses, alongside other vehicle costs, so short-term van hire goes there. The notes do not name tool or plant hire. In our reading it fits box 30, other business expenses, which covers other sundry running costs. Some car hire has restrictions, covered in our van guide.

Plant hire and CIS

HMRC's manual says payments for the hire of plant with an operator are subject to the Construction Industry Scheme (CIS), and payments for plant hired without an operator are outside it. If you hire a digger with a driver for a job, the hire firm may need to be verified and paid under CIS. Our guide on whether CIS applies to plant hire has the detail.

A worked example

A self-employed plasterer on the cash basis rents a lock-up for £90 a month in 2026-27, which is £1,080 for the year, and pays £60 to insure it. About a quarter of the floor space holds household furniture. The plasterer also hires a mixer 6 times at £35 a time and a larger van for one job at £120.

The claimable costs come to £1,185 (£810 + £45 + £210 + £120). The personal share of £285 (£270 rent + £15 insurance) is not claimable. This is an example only.

What this means for you

Storage and hire costs reduce your taxable profit when they are for the business, unless you take the £1,000 trading allowance instead of claiming expenses. The traps are personal use of a unit and treating a garage at home as rented premises.

Steps to claim storage and hire costs

1. Keep the rental agreement, invoices and receipts for each unit and each hire.
2. Work out the business share of any unit that also holds personal things.
3. Record unit rent, rates, power and insurance under "Rent, rates, power and insurance costs", box 21 in the notes to the 2025-26 full self-employment pages.
4. Record van hire under car, van and travel expenses, box 20, and in our reading tool and plant hire under other business expenses, box 30.
5. If you include any non-business part, also put it in the matching disallowable box: box 36 for box 21, box 35 for box 20 and box 45 for box 30.

The free MTD check shows when Making Tax Digital starts for you, and the trades section has more guides.