Simplified Expenses Calculator 2026 (Self-Employed)

Simplified expenses are flat-rate deductions for sole traders and partnerships to avoid the need to calculate actual costs. They cover vehicle mileage, home working and living in business premises.

45p per mile for the first 10,000 business miles per year, then 25p per mile above 10,000 miles. Motorbikes are 24p per mile. These replace all actual vehicle running costs (fuel, insurance, servicing, depreciation).

£10/month for 25–50 hours, £18/month for 51–100 hours, £26/month for 101+ hours of business use per month. These replace a proportion of actual home bills (gas, electricity, internet).

If you live in your business premises (e.g. a B&B, care home, or shop with flat above), you can deduct £350/month (1 person), £500/month (2 people) or £650/month (3+ people) to reflect private use.

Yes, but not within the same expense category in the same accounting period. You should choose the method that gives the higher deduction, bearing in mind that switching vehicles resets the mileage threshold.

No. Simplified expenses are only available to sole traders and business partnerships. Limited companies must use actual expenditure methods.

No. Once you use simplified mileage for a vehicle, you cannot also claim capital allowances (Annual Investment Allowance) for that vehicle. If you've already claimed capital allowances, you're locked into actual costs.

No. Only private vehicle use for business purposes. Public transport fares, accommodation and subsistence costs on business trips must be claimed as actual expenses.