Simplified expenses replace receipts-and-apportionment with flat rates. The big two: business mileage at 55p per mile for the first 10,000 miles then 25p (raised from 45p in April 2026), and working from home at £10 to £26 a month depending on hours. Once you use the mileage method for a vehicle you must stick with it for that vehicle.
Flat rates trade a little accuracy for a lot of simplicity and a claim that is easy to defend. Drivers of expensive vehicles sometimes do better with actual costs plus capital allowances. Compare both routes with the Mileage Allowance Calculator and the Expenses Checker.
A courier driving 9,000 business miles claims 9,000 × 55p = £4,950 with nothing more than a mileage log. The actual-cost alternative means apportioning fuel, insurance, servicing and depreciation between business and private use, with receipts for all of it. For ordinary cars the flat rate usually wins on both money and effort; expensive or thirsty vehicles are the exception worth calculating.
