What is Simplified expenses?
Flat rates you can use instead of working out the real cost of vehicles, home working or living at your premises.
Rather than totting up fuel, insurance, servicing and repairs, you can claim a flat rate per business mile. For cars and goods vehicles that is 55p a mile for the first 10,000 business miles in the tax year, then 25p a mile above that.
The 55p figure is recent: it rose from 45p with retrospective effect from 6 April 2026. Most mileage guidance online has not caught up, which on 12,000 business miles is a £1,000 difference in what you deduct.
One rule to know before you choose: once you use the flat rate for a particular vehicle, you keep using it for that vehicle. You cannot alternate between flat rate and actual costs year to year depending on which comes out better.
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