Simplified expenses are a way of calculating some of your business expenses using flat rates instead of working out your actual business costs.
You don’t have to use simplified expenses. You can decide if it suits your business.
Simplified expenses can be used by:
- sole traders
- business partnerships that have no companies as partners
You can use flat rates for:
- business costs for vehicles
- working from home
- living in your business premises
You must calculate all other expenses by working out the actual costs.
Costs you can claim as allowable expenses
These include:
- office costs, eg stationery or phone bills
- travel costs, eg fuel, parking, train or bus fares
- clothing expenses, eg uniforms
- staff costs, eg salaries or subcontractor costs
- things you buy to sell on, eg stock or raw materials
- financial costs, eg insurance or bank charges
- costs of your business premises, eg heating, lighting, business rates
- advertising or marketing, eg website costs
Use this checker to work out which method is best for you.
What you need to know:
- you’ll be asked to make estimates about some of your business expenses – you don’t have to give accurate amounts
- this checker doesn’t give exact figures to use in your tax return, it gives you an idea of which way of calculating your expenses might be best for you
- limited companies aren’t eligible
