UK Simplified Expenses Calculator (45p/25p mileage and use of home vs actual costs)

Simplified expenses or actual costs: which claim is bigger?

Enter your business miles and the hours you work at home. Add your real costs to see whether HMRC's 45p/25p mileage rate and £10/£18/£26 home flat rate beat claiming what you actually spent, and what the better claim saves in tax.

For sole traders and partnerships. Rates are built in; check them on GOV.UK. Not tax advice.

Business car or van miles this tax year

Total miles in that car (business + private)

Car running costs for the year (£): fuel, insurance, repairs, tax

Capital allowance on the car this year (£)

Business motorcycle miles

Business bicycle miles

Hours worked at home per month

Months you worked at home this year

Household heat, light and broadband for the year (£)

Rooms used for work

Rooms in the home

Your marginal rate % (income tax + Class 4 NIC, e.g. 29 or 51)

Fill in what applies to you, then click Compare my claims.

What it does, and what it leaves to you

Covers: cars and vans (45p then 25p), motorcycles (24p), and use of home (flat monthly rate by hours), each against an estimate of actual costs.
Gives: the larger claim for each item, the gap, and the estimated tax saved at the rate you enter.
Not decided: living at business premises, limited companies, tax-year rate changes, whether a journey counts as business travel, and capital allowances beyond the figure you enter.

Common questions

What can a UK sole trader claim per business mile?

HMRC's simplified rate for cars and vans is 45p a mile for the first 10,000 business miles in the tax year and 25p a mile after that. Motorcycles are 24p a mile. You claim this instead of fuel, insurance, repairs and capital allowances for that vehicle.

When are actual vehicle costs better than 45p a mile?

When your real running costs plus capital allowances, multiplied by your business-use share, come to more than the mileage rate gives. This tends to happen with low business mileage, an expensive car, or high insurance and repair costs. Heavy mileage in an efficient car usually favours the mileage rate.

How does the use of home flat rate work?

If you work at least 25 hours a month at home, you can claim a flat £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. It covers heat, light and broadband in your home; you do not need to apportion the bills.

Can I switch between simplified and actual costs?

You choose per vehicle and per business-use cost. Once you have claimed capital allowances on a vehicle you cannot use the simplified mileage rate for it, and the simplified rate is not available to limited companies.

Does this apply to my limited company?

No. These simplified expenses are for sole traders and partnerships. A company reimburses mileage under HMRC's approved rates and can pay a small amount for employees working at home; this tool does not calculate that.

Is my data uploaded anywhere?

No. Everything is calculated in your browser and nothing is sent.