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Simplified expenses
Calculate flat-rate business expenses.
Work out simplified expenses for business mileage, working from home and living at your business premises, using HMRC's flat rates.
Rules last checked against the official pages on 9 October 2026.
Simplified expenses
Calculate flat-rate business expenses
Flat rates are an alternative to working out your actual costs, if they apply to your business. You can't claim the same costs twice: use the mileage rate instead of your actual vehicle costs, not as well as them.
Keep your records for the tax year. Sole trader records (Excel, £12 once) adds up income, expenses and mileage by quarter and gives a year-end profit for your return. It suits sole traders under the Making Tax Digital threshold; above it, a spreadsheet needs bridging software to send updates to HMRC.