Can I claim business insurance as a tax expense as a sole trader?

Can I claim business insurance as a tax expense as a sole trader? Yes. In 2026-27, most business insurance is an allowable expense: public liability, tools, van (on actual costs), employers' liability and professional indemnity. Cover for yourself, such as life insurance or income protection, is not. No. HMRC's manual says the flat mileage rate already covers the costs of buying, running and keeping the van, including insurance. Parking, tolls and congestion charges on business trips can still be added on top. No. HMRC's manual says premiums a sole trader pays for life, accident or sickness cover for themselves are not allowable. The flip side is that payouts from those policies are not trading income. Usually, yes. HMRC's manual says that in most cases, where the premiums are allowable, the money paid out under the policy counts as trading income. A payout for lost or damaged tools or equipment is a capital receipt, but HMRC's manual says it still counts in your profits up to any amount you have already deducted for that loss, such as repairs or replacements. Read the full answer, with every source, at rightotax.co.uk.