Free Business Expense Tracker
HMRC-compliant Excel template used by 1000+ UK resellers
Why Expense Tracking Matters for UK Resellers
Proper expense tracking is crucial for UK resellers, especially those approaching or exceeding the £1,000 trading allowance. Every legitimate business expense reduces your taxable profit, potentially saving you hundreds in income tax.
Quick Benefits:
- Reduce taxable profits through legitimate expense deductions
- Stay HMRC-compliant with proper record keeping
- Understand your true profit margins per item/platform
- Identify areas to optimize costs and increase profitability
- Prepare for potential HMRC enquiries with organized records
Essential Business Expenses for UK Resellers
Direct Selling Costs
- • Platform fees: Depop transaction fees, Facebook selling fees
- • Payment processing: PayPal, Stripe, card processing charges
- • Listing fees: eBay insertion fees, promoted listing costs
- • Final value fees: Platform commissions on completed sales
Packaging & Shipping
- • Packaging materials: Boxes, bags, bubble wrap, tape
- • Postage costs: Royal Mail, courier services, tracked delivery
- • Branded packaging: Custom mailers, thank you cards, stickers
- • Packaging tools: Scales, tape dispensers, label printers
Business Operations
- • Business mileage: Sourcing trips, post office runs (45p/25p per mile)
- • Storage costs: Self-storage units, additional home space costs
- • Equipment: Cameras, lighting, mannequins, clothing rails
- • Software subscriptions: Inventory management, accounting tools
Professional Services
- • Accountancy fees: Professional tax advice, bookkeeping
- • Insurance: Public liability, goods in transit, business equipment
- • Banking: Business account fees, transaction charges
- • Legal costs: Business registration, trademark applications
What's Included in Our Free Template
Template Features:
- Pre-categorized expense types for resellers
- Automatic VAT calculations where applicable
- Monthly and annual summary reports
- HMRC-compliant formatting and fields
- Platform-specific fee tracking sections
- Mileage log with automatic rate calculations
- Receipt reference system for audit trails
- Profit margin analysis by item category
HMRC Record Keeping Requirements
HMRC requires all self-employed individuals to maintain accurate business records. Here's what you must keep:
Required Records
All business receipts, invoices, bank statements, and expense records for at least 5 years after the submission deadline.
Acceptable Formats
Digital records are fully acceptable - photos of receipts, electronic invoices, and spreadsheet records all count.
Audit Trail
Each expense should be traceable back to a receipt or invoice with date, amount, supplier, and business purpose clearly documented.
Common Expense Tracking Mistakes
Mistakes to Avoid:
Mixing Personal and Business Expenses
Only business-related costs are deductible. Keep personal purchases separate.
Poor Receipt Management
Lost receipts = lost deductions. Photograph receipts immediately and store digitally.
Inadequate Descriptions
“Shopping” isn't enough - specify “Packaging materials for resale business” for clarity.
Platform-Specific Expense Tracking
Depop Expenses
- • Transaction fees (2.9% + £0.30)
- • Boosted listing costs
- • Photography equipment
- • Trendy packaging materials
Vinted Expenses
- • Item bump fees (optional)
- • Wardrobe spotlight costs
- • Professional photo equipment
- • Efficient packaging solutions
Facebook Expenses
- • Shipping fees (10% if posted)
- • Promoted post advertising
- • Travel costs for local meetups
- • Safety measures for collections
Maximizing Your Expense Deductions
Pro Tips for UK Resellers:
- Separate business bank account: Makes expense tracking infinitely easier
- Business credit card: Automatic transaction records and potential rewards
- Digital receipt storage: Use apps like Receipt Bank or Google Drive
- Regular reconciliation: Review and categorize expenses weekly, not annually
- Professional advice: Annual accountant review to optimize deductions
- Proportional home costs: Claim percentage of home bills if using space exclusively for business
Using the Template Effectively
Step 1: Initial Setup
Download and open the template in Excel or Google Sheets. Customize the categories based on your specific reselling activities.
Step 2: Daily Entry
Enter expenses as they occur. Include date, amount, supplier, category, and business purpose for each expense.
Step 3: Regular Review
Weekly reviews help catch missing receipts and ensure accuracy. Monthly summaries show spending patterns and profit trends.
This template is provided for general guidance. Individual circumstances vary, and professional accounting advice is recommended for complex situations or significant business operations.