UK simplified expenses calculator
If you're a sole trader or in a partnership, HMRC lets you use flat rates instead of working out actual costs for three things: working from home, business mileage and living at your business premises. Enter your hours, miles and people to see the yearly amount you can include in your expenses on your Self Assessment return. It's free, and nothing you type leaves your browser.
Only want mileage? The mileage allowance calculator covers it in more detail, and the mileage and expenses guide explains what else you can claim.
Who can use simplified expenses
- Yes: sole traders, and business partnerships that have no companies as partners.
- No: limited companies, and business partnerships involving a limited company.
Simplified expenses are optional, and there's no income limit. They only cover three things: vehicle mileage, working from home and living at your business premises. You must work out all your other business expenses using actual costs. If you use the £1,000 trading allowance instead of expenses, you can't claim these either (see the trading allowance calculator).
Keep a record of your business miles, the hours you work at home each month and how many people live at your business premises, then add the amounts to your expenses on your Self Assessment tax return.
HMRC's flat rates
Working from home
| Hours of business use a month | Flat rate a month |
|---|---|
| Under 25 | £0 (can't use the flat rate) |
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 and more | £26 |
Vehicles
| Vehicle | 2025 to 2026 (before 6 April 2026) | 2026 to 2027 |
|---|---|---|
| Cars and goods vehicles, first 10,000 miles | 45p | 55p |
| Cars and goods vehicles, after 10,000 miles | 25p | 25p |
| Motorcycles | 24p | 24p |
Rates are per business mile. Cars designed for commercial use, such as black cabs, hackney carriages or dual control driving instructors' cars, can't use the flat rate. The calculator splits the car and van miles you enter at 10,000, as in GOV.UK's example.
Living at your business premises
| People living at the premises | Private use flat rate a month |
|---|---|
| 1 | £350 |
| 2 | £500 |
| 3 or more | £650 |
Everyone living there counts, including children and non-paying guests. Sources: vehicles, working from home and living at your business premises on GOV.UK, and HMRC's manual BIM75005.
Simplified expenses or actual costs?
You can always work out your actual costs instead. That means the business share of your household bills, or the business share of what you spend on running a vehicle plus capital allowances on buying it. Actual costs take more records but can give a bigger claim, for example if you have a large home office, high heating bills or an expensive vehicle.
- The flat rates save you working out how much of your bills are for business.
- Working from home at £10 to £26 a month comes to £120 to £312 a year at most.
- Using the flat rate for home bills doesn't stop you claiming the business share of council tax, insurance and mortgage interest separately, as long as you can show the business part.
Compare both with GOV.UK's simplified expenses checker. To see what your expenses do to your tax bill, try the tax set-aside calculator.
Worked example (made-up figures)
Priya is a self-employed graphic designer filling in her return for the 2025 to 2026 tax year. She works at home about 60 hours a month for 10 months, but only 20 hours in each of the 2 months she travels. She drives 11,000 business miles in her own car and has never claimed capital allowances on it.
| Flat rate | Sum | Amount |
|---|---|---|
| Working from home | 10 months × £18 (2 months under 25 hours get £0) | £180 |
| Car, first 10,000 miles | 10,000 × 45p | £4,500 |
| Car, after 10,000 miles | 1,000 × 25p | £250 |
| Total | £4,930 |
She also adds her actual parking costs and the business share of her phone and broadband. The same miles in the 2026 to 2027 tax year would give £5,750 at 55p.
Tom runs a small guesthouse and lives there on his own all year. His premises costs are £9,600. He takes off 12 × £350 = £4,200 for private use and claims £5,400.
These are made-up figures to show how the sums work, not real people.
Frequently asked questions
Who can use simplified expenses?
Sole traders and business partnerships that have no companies as partners. Limited companies, and partnerships involving a limited company, can't use them. There's no income limit, and you can use them whether or not you use the cash basis. They're optional.
How much can I claim for working from home?
It depends on the hours you work at home on your business each month: £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. You get nothing for a month with fewer than 25 hours. Add up the flat rate for each month of the tax year.
Which hours count as working from home?
HMRC counts the hours you spend wholly and exclusively on your business at home: providing your goods or services, keeping your business records, and marketing or finding new work. If partners in the same business share a home, the partnership gets one deduction based on their combined hours, and no hour is counted twice.
What are the simplified mileage rates?
For cars and vans it's 45p a mile for the first 10,000 business miles in the 2025 to 2026 tax year, rising to 55p for the 2026 to 2027 tax year. After 10,000 miles it's 25p, and motorcycles are 24p a mile in both years. The number of people in the vehicle doesn't change the rate.
Can I claim phone, internet, parking and tolls on top?
Yes. The working from home rate doesn't include phone or internet, so you can claim the business share of those bills as actual costs. With the mileage rate you can also claim parking, tolls, congestion charges and other travel such as train journeys.
Can I switch between simplified expenses and actual costs?
You don't have to use flat rates for all your vehicles, but once you use the mileage rate for a vehicle you must keep using it for as long as that vehicle is in your business. You also can't use it for a vehicle you've already claimed capital allowances on. Use GOV.UK's simplified expenses checker to compare the two methods.
How does living at your business premises work?
It's for businesses where the premises are also your home, such as a guesthouse, bed and breakfast or small care home. Add up the premises costs, then take off £350 a month if 1 person lives there, £500 for 2 people or £650 for 3 or more. The rest is your business expense. Only count the months each person lives there.
Can I use simplified expenses and the £1,000 trading allowance?
No. If you use the £1,000 tax-free trading allowance you can't claim any expenses, including simplified expenses. Use whichever gives the bigger deduction. The trading allowance calculator can help you compare.
More self-employed tools
See how much tax to put aside with the tax set-aside calculator, check your January and July bills with the payments on account calculator, compare expenses with the trading allowance calculator, or read how much tax to set aside. All tools are in the self-employed hub.
Sources
GOV.UK: Simplified expenses if you're self-employed, Simplified expenses: vehicles, Simplified expenses: working from home, Simplified expenses: living at your business premises, Simplified expenses checker, Expenses if you're self-employed, HMRC manual BIM75001: who can use simplified expenses, HMRC manual BIM75005: motor vehicles, HMRC manual BIM75010: use of home, HMRC manual BIM75015: private use of business premises. All checked on 25 October 2026. General guidance only, not tax or financial advice.