If you’re a sole trader or partnership there are 2 ways you can calculate business expenses for vehicles, working from home and living on your business premises.
You can either:
- use simplified expenses
- calculate your expenses by working out the actual costs
Use this checker to work out which method is best for you.
What you need to know
You’ll be asked to make estimates about some of your business expenses.
This tool:
- does not give exact figures to use in your tax return - it tells you which way of calculating expenses might save you money
- can only give an answer for one vehicle at a time - if you have several vehicles, start at the beginning for each vehicle
Who cannot use this tool
Do not use this tool for vehicle expenses if:
- you use cash basis and you’ve already deducted your vehicle as a capital cost
- the vehicle you’re claiming for is used by an employee and you pay tax on it as a benefit
- you’re claiming for a car and you started using it for your business before April 2015
You have to be a sole trader or business partnership with other people - limited companies or business partnerships that have a corporate partner cannot claim simplified expenses.