Flat rate expenses are also commonly known as simplified expenses. They are flat rates that you can use to reduce your self-employment taxes, rather than working out your actual business costs. That being said, this approach may not always suit your circumstances. You can use flat rate expenses if you are:
This type of expense cannot be used by limited companies or business partnerships involving a limited company.
You can claim flat rate expenses for any of the following:
All other business expenses can be claimed by working out the actual costs.
You can claim flat rate expenses through your Self-Assessment tax return. It’s important to remember to 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. When completing your tax return, you can work out the amount of flat rate expenses you can claim. You can then include these amounts in the total for your expenses.
Remember to file your Self Assessment by 31st January the year after the tax year you’re paying for. For example, if you’re paying your 2023/2024 tax return, this should be paid by 31st January 2025.
For complete information about claiming your expenses individually, visit our Expenses glossary page! Here you can find expert advice and guidance, or you can contact our team to help support you.