Simplified Expenses 2026: Flat Rate Mileage & Home Office for Gig Workers
Key Takeaways
- Simplified expenses cover two areas only: vehicle mileage and working-from-home costs
- Mileage flat rates: 45p/mile car (first 10,000 miles, 25p after), 24p/mile motorcycle, 20p/mile bicycle
- Home working flat rate: £10/month (25-50 hours), £18/month (51-100 hours), £26/month (101+ hours) — based on hours worked from home per month
- Once you choose the flat rate for a vehicle's mileage, you must continue using it for that vehicle for as long as you use it in the business
- Simplified expenses cannot be used if your business is a limited company — only sole traders and partnerships (without corporate partners) qualify
- You can mix methods: flat-rate mileage alongside actual costs for other expenses like insurance, phone, or equipment
What Are HMRC's Simplified Expenses?
Simplified expenses are optional flat rates that self-employed people can use instead of working out the actual costs of certain business expenses. They were introduced to reduce the record-keeping burden for sole traders and partnerships with straightforward affairs — including gig economy delivery drivers and couriers.
Simplified expenses apply to exactly two categories: vehicle costs (mileage) and working from home. For every other expense — insurance, equipment, phone, platform fees — you still calculate the actual cost (or business-use proportion of it) as normal.
"Simplified expenses are a way of calculating some of your business expenses using flat rates instead of working out your actual business costs." — GOV.UK — Simplified expenses if you're self-employed
Simplified Mileage Rates for 2026
If you choose simplified expenses for your vehicle, you record your business mileage and multiply by the relevant flat rate — covering fuel, insurance, repairs, servicing, and depreciation all in one figure. You cannot also claim these costs separately if you use the flat rate.
| Vehicle Type | Rate per Mile | Threshold |
|---|---|---|
| Car or goods vehicle (first 10,000 miles) | 45p per mile | Up to 10,000 miles per tax year |
| Car or goods vehicle (above 10,000 miles) | 25p per mile | Above 10,000 miles per tax year |
| Motorcycle | 24p per mile | No upper limit |
| Bicycle | 20p per mile | No upper limit |
These are the same rates used throughout UKGigTax's platform guides — they apply to Deliveroo, Uber Eats, Stuart, Wolt, Uber, Bolt, Amazon Flex, and any other self-employed gig work involving a vehicle.
Working From Home Flat Rates for 2026
If you work from home for at least 25 hours a month managing your gig work — bookkeeping, scheduling, admin — you can claim a flat monthly amount instead of calculating a proportion of your actual household bills.
| Hours Worked From Home Per Month | Flat Rate Per Month |
|---|---|
| 25 to 50 hours | £10 |
| 51 to 100 hours | £18 |
| 101 hours or more | £26 |
This flat rate does not include telephone or internet costs — you can claim the business-use proportion of these separately, in addition to the flat rate, using actual bills.
For most full-time delivery drivers and couriers, the home-working flat rate is a modest amount compared to mileage, but it's an easy addition that requires no receipts — just a log of hours spent on admin each month.
Who Can Use Simplified Expenses?
Simplified expenses are available to sole traders and partnerships, but not to limited companies. If you operate your gig work through a limited company (uncommon for individual delivery drivers, but possible for some freelancers), you must use actual costs.
- Sole traders — can use simplified expenses for mileage and home working
- Partnerships — can use simplified expenses, but only if none of the partners is a limited company
- Limited companies — cannot use simplified expenses; must calculate actual costs
The vast majority of gig economy drivers and couriers — Deliveroo, Uber Eats, Stuart, Wolt, Uber, Bolt, Amazon Flex — operate as sole traders, so simplified expenses are available to almost everyone reading this guide.
Can You Switch Between Simplified and Actual Expenses?
For vehicles, the choice is largely locked in once made. If you use simplified expenses (flat-rate mileage) for a vehicle in the first year you use it for business, you must continue using simplified expenses for that vehicle for as long as you use it in the business — you cannot switch to actual costs and claim capital allowances later for the same vehicle.
Conversely, if you claimed actual costs and capital allowances for a vehicle from the start, you cannot switch to simplified expenses for that vehicle later.
For working from home, there is more flexibility — you can choose the flat rate or actual costs each tax year, independent of your vehicle choice.
Worked Example: A Delivery Driver Using Simplified Expenses
Consider a Deliveroo rider using a moped, doing 6,000 business miles over the year, plus around 8 hours per month on admin and bookkeeping from home.
| Expense | Calculation | Annual Amount |
|---|---|---|
| Moped mileage | 6,000 miles × 24p | £1,440 |
| Home working | Below 25 hrs/month threshold | £0 (does not qualify) |
| Phone (actual, 50% business use) | £35/month × 12 × 50% | £210 |
| Equipment (actual) | Helmet, bag, lights | £140 |
| Total deduction | — | £1,790 |
In this example, the home-working flat rate doesn't apply because the rider spends under 25 hours per month on admin — most full-time drivers spending more hours managing bookings, accounts, and scheduling would qualify for the £10-£26/month rate on top.
Frequently Asked Questions
What are HMRC's simplified expenses for 2026?
Simplified expenses are flat rates that self-employed people can use for two categories of expense instead of calculating actual costs: vehicle mileage (45p/mile car, 24p/mile motorcycle, 20p/mile bicycle for the first 10,000 miles) and working from home (£10-£26 per month depending on hours).
Can gig economy drivers use simplified expenses?
Yes. Almost all gig economy drivers and couriers — for Deliveroo, Uber Eats, Stuart, Wolt, Uber, Bolt, and similar platforms — operate as sole traders, which qualifies them to use simplified expenses for mileage and home working.
What is the simplified mileage rate for a car in 2026?
45p per mile for the first 10,000 business miles in the tax year, and 25p per mile for any miles above 10,000 in the same tax year.
Can I switch from simplified expenses to actual costs?
For vehicles, generally no — once you choose the flat-rate mileage method for a specific vehicle, you must continue using it for that vehicle for the rest of the time you use it in your business. For home working, you can choose each year independently.
Do simplified expenses cover my phone bill?
No. Simplified expenses only cover vehicle mileage and home working flat rates. Phone bills, insurance, equipment, and platform fees must still be claimed based on actual costs and business-use proportion.
How many hours do I need to work from home to claim the flat rate?
At least 25 hours per month. Below this threshold, you cannot use the home-working flat rate, though you may still be able to claim a proportion of actual household costs.
What UK Gig Workers Say
No sign-up required. No hidden fees. Ever.
Didn't realise the home-working flat rate existed at all — I've been adding up a proportion of my electricity bill every January which took forever. This is so much simpler going forward.
Useful clarification that once you pick flat-rate mileage you're stuck with it for that car. Wish I'd read this before I filed last year — would have changed my approach.
The worked example at the end made it click for me. Straightforward and exactly the level of detail I needed without being overwhelming.