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.

If you sell a UK residential property that isn't fully covered by Private Residence Relief and there's CGT to pay, you must report the sale and pay the tax within 60 days of the completion date.

This applies to: second homes, buy-to-lets, inherited properties you didn't live in, and any property where PRR only partially applies.

The 60-day clock starts from the completion date — not the date you exchanged contracts. It's 60 calendar days, so weekends and bank holidays count.

Even if your gain is small or you think you might not owe much, you still need to report within 60 days if there's any taxable gain at all. This is completely separate from your annual Self Assessment return.

Missing the deadline results in an automatic late filing penalty from HMRC.

If you've recently completed a property sale, message us on live chat as soon as possible so we can get started within the window.

Only one property can be your main home at any one time for CGT purposes.

Your main home is covered by Private Residence Relief and is generally exempt from CGT when you sell it. The other property — whether it's a second home, a buy-to-let, or a property you've inherited — won't benefit from PRR and any gain on sale will be subject to CGT.

If you own two properties and haven't formally nominated one as your main residence, HMRC looks at the facts: where you spend most of your time, where you're registered to vote, where your post goes, and so on.

You can formally nominate your main residence by writing to HMRC within 2 years of first owning two homes at the same time.

If you've recently acquired a second property or are planning to sell one, message us on live chat or book a call with us — it's worth getting advice on your specific situation.

Yes. Before we calculate your CGT liability, we check every available relief to make sure your bill is as low as it legally can be.

The main ones we look at are:

Private Residence Relief (PRR): if the property was your main home for any part of your ownership, this can significantly reduce or eliminate the taxable gain.

Lettings Relief: in limited circumstances, if you lived in the property at the same time as letting part of it, you may be entitled to additional relief.

The Annual Exempt Amount: the first £3,000 of gains each year is tax-free, and for joint owners each person gets their own allowance.

Allowable costs: purchase costs, legal and estate agent fees, stamp duty, and the cost of any improvements to the property can all be deducted from the gain.

We do all of this as part of the service — you don't need to work any of it out yourself.

Private Residence Relief (PRR) is the tax relief that exempts the gain on your main home from Capital Gains Tax.

If you lived in the property as your only or main residence for the entire time you owned it, the full gain is exempt and you don't need to report the sale.

PRR also covers the final 9 months of ownership automatically, even if you've already moved out by then. So if you moved out and rented the property before selling, the last 9 months still count as a period of residence for relief purposes.

PRR is reduced proportionally for any periods where the property wasn't your main home — for example, if you owned it for 10 years but only lived in it for 7, roughly 70% of the gain (plus the final 9 months) would be exempt.

If you're not sure whether PRR applies to your sale in full or in part, message us on live chat — it's one of the most common areas where people either over or underpay.