Expense Tracker Template

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This expense tracker is designed for UK freelancers and self-employed professionals. It organises your business expenses into HMRC-friendly categories, making tax returns straightforward.

Why Track Expenses

Tracking business expenses isn't just good practice—it directly affects how much tax you pay. Every legitimate business expense reduces your taxable profit, which means more money in your pocket.

Here's why consistent expense tracking matters:

Reduce Your Tax Bill

Business expenses are tax-deductible. If you earn £50,000 but have £10,000 in legitimate expenses, you only pay tax on £40,000. The more thoroughly you track expenses, the more deductions you can claim.

Avoid HMRC Problems

Random expense claims without records are a red flag for HMRC investigations. Proper tracking with receipts means you can back up every deduction. Keep records for at least six years.

Understand Your Business

Tracking expenses shows you where your money goes. You might be surprised how much you spend on software subscriptions, or realise you're underspending on professional development.

Cash Flow Planning

Knowing your regular expenses helps you plan for quieter months. You'll have a clearer picture of your minimum monthly outgoings.

VAT Compliance

If you're VAT-registered, you need to track VAT paid on expenses to reclaim it. Our spreadsheet includes VAT tracking columns.

What's Included in This Template

The CSV template includes columns to keep your expenses organised. Import it into Excel, Google Sheets, or Numbers to add your own formulas and sheets:

Monthly Expense Sheets

One sheet for each month of the year. Each entry captures:

• Date – When the expense occurred
• Description – What you bought or paid for
• Supplier/Vendor – Who you paid
• Category – Type of expense (dropdown menu)
• Net amount – Cost before VAT
• VAT amount – VAT paid (if applicable)
• Total amount – Full amount paid
• Payment method – Card, bank transfer, cash, etc.
• Receipt reference – Your filing reference for the receipt

Annual Summary Sheet

Automatically totals your expenses by category across the year. This summary feeds directly into your Self Assessment tax return—no additional calculations needed.

Category Breakdown Sheet

Visual charts showing your spending patterns. See at a glance which categories have the highest expenses and how spending varies month to month.

VAT Summary Sheet

For VAT-registered freelancers, this sheet totals VAT paid on expenses by quarter—ready for your VAT returns.

Categories Explained

The spreadsheet uses HMRC-aligned expense categories. Here's what belongs in each:

Office, Property and Equipment

Rent, utilities, office furniture, computers, monitors, desks. Equipment over £500 may need to be treated as capital expenditure—consult your accountant.

Travel

Business travel including trains, flights, taxis, and mileage for car journeys. Keep records of journey purpose. Commuting to a regular workplace doesn't count.

Clothing and Uniforms

Only if required for your work and not suitable for everyday wear. Most freelancers can't claim regular clothing.

Staff Costs

Payments to subcontractors, freelancers you hire, or employees. Also includes employer's National Insurance.

Marketing and Advertising

Website costs, social media advertising, printed materials, networking event fees, business cards.

Professional Services

Accountancy fees, legal advice, industry memberships, professional certifications.

Software and Subscriptions

Business software, SaaS subscriptions, hosting, domain names. Split any personal-use software proportionally.

Training and Development

Courses, books, conferences directly related to your current business. Retraining for a new career typically doesn't qualify.

Insurance

Professional indemnity, public liability, business equipment insurance. Not general life or health insurance unless employee benefit.

Bank Charges and Interest

Business account fees, PayPal fees, card processing fees, interest on business loans.

Monthly Tracking Routine

The key to successful expense tracking is building a routine. Here's a practical approach:

Weekly Habit (5 minutes)

Set a recurring reminder to log expenses. Most freelancers find Friday afternoon works well—it's a natural end-of-week task.

1. Go through your bank statement for the week
2. Add each business expense to the spreadsheet
3. Take photos of paper receipts and file them
4. Save digital receipts to a dedicated folder

Monthly Review (15 minutes)

At month end:

1. Review the month's expenses for anything missed
2. Check the category summary makes sense
3. Note any unusual expenses for reference
4. Reconcile with your bank statement total

Quarterly Check (30 minutes)

Every quarter:

1. Review year-to-date totals
2. Estimate your tax liability
3. Set aside money for tax if needed
4. Check VAT summary if registered

Tax Time Preparation

When Self Assessment season arrives, your spreadsheet makes things simple:

Before January

• Complete all monthly sheets through December
• Review the annual summary sheet
• Check totals match your expectations
• Ensure all receipts are filed and referenced

Filling Your Tax Return

The annual summary categories align with Self Assessment boxes. Transfer totals directly—no additional calculation needed.

Keep Everything

HMRC can investigate up to six years back. Keep your spreadsheet and all supporting receipts for at least this long. Digital copies are acceptable.