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Simplified Expenses: Mileage and Home Flat Rates
General information, not tax or financial advice. We are not HMRC and are not affiliated with it. Sources read on 17 October 2026 ("as read on 17 October 2026"); expected marks our own reading. Examples are fictional.
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Short answer: For the 2025-26 return due 31 January 2027, the mileage rate is the one GOV.UK lists for "before 6 April 2026": 45p a mile for the first 10,000 miles. The 55p rate is for the 2026-27 tax year. After 10,000 miles it is 25p, and motorcycles 24p, in both columns.
Who can use them
GOV.UK says sole traders and partnerships with no companies as partners can use simplified expenses; limited companies and partnerships involving a limited company cannot. It is optional. You keep records of business miles and hours worked at home and enter the totals in your return.
Vehicle rates, as read on 17 October 2026
| Vehicle | 2026-27 | Before 6 April 2026 (covers 2025-26, expected) |
|---|---|---|
| Cars and goods vehicles, first 10,000 miles | 55p | 45p |
| Cars and goods vehicles, after 10,000 miles | 25p | 25p |
| Motorcycles | 24p | 24p |
Rules from the page: cars (not those designed for commercial use) and goods vehicles and motorcycles qualify; you cannot use flat rates for a vehicle already claimed for capital allowances or included as an expense. Once you use flat rates for a vehicle you must continue as long as you use it for business. Other travel such as train fares and parking can be claimed on top.
Home-working flat rate
Only if you work 25 hours or more a month at home: 25 to 50 hours, £10 a month; 51 to 100, £18; 101 and over, £26. The rate excludes phone and internet, which you claim by actual business proportion.
Fictional example (2025-26)
A sole trader drives 11,000 business miles in 2025-26: 10,000 x 45p = £4,500, plus 1,000 x 25p = £250, total £4,750 (expected, our arithmetic using the 'before 6 April 2026' column). GOV.UK's own example uses the 2026-27 rate: 10,000 x 55p = £5,500 plus £250 = £5,750. Do not mix the two columns.
Choosing
GOV.UK offers a simplified expenses checker to compare flat rates with actual costs. See also the trading allowance guide for small side income.
FAQ
Can I use 55p on my 2025-26 return? The page lists 45p for before 6 April 2026, so no.
Can I claim phone costs too? Yes, by actual proportion, on top of the home flat rate.
What we could not verify
- Whether older tax years before 2025-26 used other rates (page lists only two columns).
- Living-at-business-premises flat rates (page not read).
- Check GOV.UK before acting; pages change.
Sources (official)
- GOV.UK, Simplified expenses: Overview: https://www.gov.uk/simpler-income-tax-simplified-expenses/what-are-simplified-expenses (read 17 October 2026)
- GOV.UK, Simplified expenses: Vehicles: https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles (read 17 October 2026)
- GOV.UK, Simplified expenses: Working from home: https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home (read 17 October 2026)
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Not tax advice. See the disclosure.