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 use simplified expenses or 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:

  • doesn’t 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 can’t use this tool

Don’t 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 sole trader or business partnership - limited companies and limited liability partnerships can’t claim simplified expenses.

Start now