Simplified expenses if you're self-employed

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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 some vehicles
  • working from home
  • living in your business premises

You must calculate all other expenses by working out the actual costs.

How to use simplified expenses

  1. Keep records of your business miles for vehicles, hours you work at home and how many people live at your business premises over the year.

  2. At the end of the tax year use the flat rates for vehicle mileage, working from home, and living at your business premises to work out your expenses.

  3. Include these amounts in the total for your expenses in your Self Assessment tax return.

Use the simplified expenses checker 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.