Instead of working out actual car costs, sole traders can use simplified expenses: a flat rate per business mile.
| Vehicle | First 10,000 business miles | After 10,000 |
|---|---|---|
| Cars and goods vans | 45p | 25p |
| Motorcycles | 24p | 24p |
Trips for business, such as to a client or to collect stock. Ordinary commuting to a regular workplace doesn't count.
Record the date, from, to, purpose and miles. The full tracker has a mileage tab that applies the rates for you.
Once you've used simplified expenses for a vehicle, you must keep using them for as long as you use that vehicle in the business.
Work out your own figure: our UK Side-Hustle Tax Set-Aside 2026/27 spreadsheet (free lite version, or the full version for £4 on Payhip) calculates the extra tax and Class 4 NI on top of your PAYE salary.
Written with the help of an AI assistant and checked against GOV.UK on 21 Oct 2026. General information, not tax advice; if in doubt, contact HMRC or a qualified adviser.