Simplified expenses are a way of calculating some of your business expenses using flat rates instead of working out your actual business costs.
You do not have to use simplified expenses. You can decide if it suits your business.
Who Can Use Simplified Expenses
Simplified expenses can be used by:
- sole traders
- business partnerships that have no companies as partners
Simplified expenses cannot be used by limited companies or business partnerships involving a limited company.
Types of Expenses
You can use flat rates for:
- business costs for vehicles
- working from home
- living in your business premises
You must calculate all other expenses (external link) by working out the actual costs.
How to Use Simplified Expenses
- Record (external link) your business miles for vehicles, hours you work at home and how many people live at your business premises over the year
- At the end of the tax year use the flat rates for vehicles (external link), working from home (external link), and living at your business premises (external link) to work out your expenses
- Include these amounts in the total for your expenses in your Self Assessment tax return (external link)
Use the simplified expenses checker (external link) to compare what you can claim using simplified expenses with what you can claim by working out the actual costs. This will help you work out if simplified expenses suits your business.