A guide to self employed simplified expenses

All self employed people need to keep records of their income and expenses and HMRC have made it that bit easier by allowing you to use simplified expenses.

What expenses can I claim if I am self employed?

Along with your day to day invoices and receipts, with simplified expenses you can use flat rates instead of working out your actual business expenses for things such as business use for vehicles, business use of home, private use of a business premises as home.

You don’t have to use the flat rates but you may prefer it.

What do I need to do?

Keep a record of how many business miles you do, how many hours you work at home and/or how many people live at your business premises over the year

At the end of the tax year calculate the allowable expenses using the flat rates and include the figures on your tax return.

So what are the flat rates I can claim?

Travel – 45p per mile for cars and goods vehicles for the first 10,000 miles and 25p per mile thereafter.

Business use of home –

Hours of business use per month Flat Rate per month
25 to 50 £10
51 to 100 £18
101 + £26

This instead of actual expenses, such as business proportion of utilities, repairs, mortgage or rent, telephone, internet.

There are lots of expenses you can claim to reduce your tax bill, if you would like some help with ways to reduce your tax bill contact us by clicking here.