Mileage vs actual costs calculator

This tool assumes:

• HMRC simplified mileage rates: cars/vans 45p per mile for the first 10,000 business miles, 25p thereafter; motorcycles 24p; bicycles 20p.
• Once you choose simplified mileage for a vehicle, you must continue using it for that vehicle until you change vehicles.
• Actual-costs method allows fuel, insurance, MOT, servicing, repairs, road tax, depreciation (capital allowances) and finance interest — apportioned by business-use percentage.
• VAT-registered businesses cannot reclaim VAT on the simplified mileage rate but can on actual fuel costs (subject to fuel scale charges if any private use).
• Calculation does not include parking, tolls, or congestion/CAZ charges — these are claimable as separate business expenses under either method.

Primary sources:

• HMRC: Simplified expenses if you're self-employed (mileage)
• HMRC: Expenses if you're self-employed
• HMRC: Rates and allowances for Income Tax