04-09-2019
Simplified expenses use of home

If a taxpayer is self-employed and running a business from home, there are simplified expense rules available for claiming a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses rules are not available to limited companies or business partnerships involving a limited company.

The use of the flat rate expenses for core business activities carried out from the home eliminates the need to calculate the proportion of personal and business use for certain bills in the home; usually, this applies to various utility bills. Instead, a monthly deduction is allowable. The use of the simplified expenses regime is optional, and businesses can claim the trade proportion of actual costs.

The current monthly rates are based on the business use of the home as follows:

  • 25 or more hours worked per month can claim £10.00
  • 51 or more hours worked per month can claim £18.00
  • 101 or more hours worked per month can claim £26.00

There is no issue if the number of hours worked varies from month to month as different amounts can be claimed for each month. The minimum number of hours worked in any month must be 25 or more. The flat rate doesn’t include telephone or internet expenses and the business proportion of these bills can be claimed by working out the actual costs. In addition, use of the flat rate deduction for household running costs does not prohibit a separate proportional deduction for fixed costs such as council tax, insurance and mortgage interest.

Source: HM Revenue & Customs | 04-09-2019

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    20-02-2020
    Employer toolkit for EU Settlement Scheme published

    Following Brexit, ... read more

    20-02-2020
    Change to the off-payroll working rules

    As part of a review ... read more

    19-02-2020
    Could you claim the marriage allowance?

    If you are entitled ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.