Simplified Expenses
Simplified expenses calculator for sole traders — use of home and mileage.
Flat-rate deduction
£1,566
Worth about £407 in Income Tax and Class 4 NI.
- Working from home
- £216
- Business mileage
- £1,350
- Actual vs flat (home)
- £216
- Enter actual costs to compare
Your deductions
- Working from home (flat rate)£216
- Business mileage£1,350
Rates and rules from Simplified expenses if you're self-employed (HM Revenue & Customs) and Expenses if you're self-employed (HM Revenue & Customs).
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Expert help
Turn your estimate into the right tax decision.
A calculator can model the numbers. Our accountants can check the assumptions, explain the options and handle the return or payroll work for you.
Ask an accountantQuestions
Frequently asked
questions.
Is the flat rate better than claiming actual costs?
Often not for people who work from home full-time, where a proportion of heating, electricity and broadband can exceed £312 a year. The flat rate is simpler and needs no apportionment; the calculator compares both.
Can a limited company use simplified expenses?
No. Simplified expenses are only for sole traders and partnerships of individuals. A company can pay its director £6 a week tax-free for working from home, or reimburse actual additional costs.
What records do I need?
A record of hours worked at home each month and a mileage log with dates, destinations and business purpose.
Can I switch from actual vehicle costs to simplified mileage?
Not for the same vehicle. Once you have claimed capital allowances or actual running costs on a vehicle you must continue with that method until you replace it.
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