Frequently Asked Questions

HMRC's flat rate (Approved Mileage Allowance Payments) for 2025/26 is 45p per mile for the first 10,000 business miles and 25p per mile after that.

To claim it:

• Keep a mileage log recording the date, destination, purpose, and miles for each business journey
• Multiply your total business miles by the appropriate rate
• Include the total in your Self Assessment return as a business expense

You can't claim mileage and actual vehicle running costs at the same time — it's one or the other. The flat rate is usually simpler and works well for most people.

Yes, if you work from home as part of running your business. There are two ways to claim.

The simplified flat rate: HMRC allows a fixed monthly amount based on the number of hours you work from home each month — £10 for 25 to 50 hours, £18 for 51 to 100 hours, and £26 for over 100 hours.

The actual cost method: you work out the business proportion of your household bills (mortgage interest or rent, utilities, broadband, council tax) based on the number of rooms and hours used for work.

The flat rate is simpler; the actual method tends to result in a higher deduction if your bills are significant.

The main things you can't claim are:

• Personal costs such as everyday clothing, even if you wear it for work (unless it's a uniform or protective gear)
• Entertaining clients — HMRC doesn't allow this as a deduction
• Fines and penalties such as parking tickets
• The cost of commuting from home to your regular workplace
• Training that helps you move into a new field rather than improving skills for your current one
• Any mixed-use costs where the personal element can't be separated

If you're unsure whether something qualifies, it's better to ask than to claim it incorrectly.

You can claim any cost that is wholly and exclusively for your business. Common examples include:

• Office supplies and equipment
• Business travel (excluding the commute to a regular workplace)
• Professional fees such as accountancy costs
• Stock and materials
• Software subscriptions used for work
• Marketing and advertising
• A proportion of your home costs if you work from home
• Training directly related to your current trade

The golden rule is that the expense must be genuinely for business use. If it has a personal element, you can only claim the business proportion.

No longer. Since the October 2024 Budget, CGT rates were aligned across all asset types.

For 2025/26 the rates are 18% (basic rate) and 24% (higher rate) for property, shares, crypto, and other assets.

Previously, gains on shares attracted lower rates of 10% and 20%. This change means the tax treatment is now the same regardless of what you're selling.

Your CGT rate depends on your total income for the year, including the gain itself.

First, work out your total taxable income (salary, self-employment, rental, dividends) and subtract your Personal Allowance (£12,570 for most people). What's left is your taxable income.

Any remaining space in your basic-rate band (up to £37,700 of taxable income) gets taxed at 18%. Any gain that pushes you above that threshold is taxed at 24%.

For example: if your taxable income is £20,000 and you make a gain of £30,000, the first £17,700 of the gain falls in the basic-rate band at 18%, and the rest is taxed at 24%.

We calculate this precisely for every client.

For 2025/26, the CGT rates are:

• 18% on gains that fall within your basic-rate income tax band
• 24% on gains above it

These rates apply to all asset types including property, shares, and crypto — the previously lower rates for shares (10% and 20%) were aligned with property rates in the October 2024 Budget.

To work out your rate: add your total taxable gain to your total income for the year. The portion of the gain that falls within your remaining basic-rate band (up to £37,700 for most people) is taxed at 18%. Anything above that is taxed at 24%.

For 2025/26, the Annual Exempt Amount is £3,000 per person.

You can make gains up to this amount across all your assets in the tax year without paying any CGT.

If you own assets jointly, each person gets their own £3,000 allowance — so a couple selling a property together effectively has a combined £6,000 exempt amount.

Gains above the threshold are taxed at 18% (basic rate) or 24% (higher rate).

The allowance has fallen significantly in recent years (it was £12,300 in 2022/23), so even modest gains can now result in a tax liability.