Last reviewed: November 2026
Simplified expenses let sole traders and partnerships claim some costs at flat rates instead of working out the actual figures. They save time on record keeping, and are worth comparing with your real costs each year.
Vehicles
| Vehicle | Rate per business mile |
|---|---|
| Cars and goods vehicles, first 10,000 miles | 55p (from 6 April 2026) |
| Cars and goods vehicles, after 10,000 miles | 25p |
| Motorcycles | 24p |
Working from home
| Hours worked at home each month | Flat rate per month |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
Phone and internet are claimed separately, based on your business use.
Living at your business premises
If you live at your business premises, such as a B&B or care home, deduct a flat amount for private use from your premises costs: £350 a month for 1 person, £500 for 2, £650 for 3 or more.
Limited companies cannot use simplified expenses. Once you use the flat rate for a vehicle, you must keep using it for that vehicle.
We’ll compare flat rates with your actual costs and claim whichever is higher. Ozvite sa nám.
Sources: GOV.UK – Simplified expenses.