Simplified expenses if you’re self-employed

[tao.alice.sheng]

Calculate your allowable expenses using a flat rate based on the hours you work from home each month.

This means you do not have to work out the proportion of personal and business use for your home, for example how much of your utility bills are for business.

You can only use simplified expenses if you work for 25 hours or more a month from home.

Hours of business use per month Flat rate per month
25 to 50 £10
51 to 100 £18
101 and more £26
Example

You worked 40 hours from home for 10 months, but worked 60 hours during 2 particular months:

10 months x £10 = £100
2 months x £18 = £36

Total you can claim = £136

Check more from https://www.gov.uk/expenses-if-youre-self-employed

• This topic was modified 1 year, 4 months ago by tao.alice.sheng.

[tao.alice.sheng]

You’ll need to find a reasonable method of dividing your costs, for example by the number of rooms you use for business or the amount of time you spend working from home.

Example
You have 4 rooms in your home, one of which you use only as an office.

Your electricity bill for the year is £400. Assuming all the rooms in your home use equal amounts of electricity, you can claim £100 as allowable expenses (£400 divided by 4).

If you worked only one day a week from home, you could claim £14.29 as allowable expenses (£100 divided by 7).

[tao.alice.sheng]

Bills: Gas and Electricity
I rent a three-bedroom house and work from home most of the time, so I calculate my gas and electricity bills according to the room numbers.
My gas and electricity bills each month are £117.62
If I calculate based on time spent, it will be £26 per month
If I calculate based on room numbers, it will be £39.2 per month
So my bookkeeping will be
Category: Expenses, Subcategory: Bills: Gas and Electricity, Account Type: Business, Value: £39.2
Category: Expenses, Subcategory: Bills: Gas and Electricity, Account Type: personal, Value: £78.42

• This reply was modified 1 year, 4 months ago by tao.alice.sheng.

[tao.alice.sheng]

Telephone:
If you use something for both business and personal reasons
You can only claim allowable expenses for the business costs.

Example
Your mobile phone bills for the year total £200. Of this, you spend £130 on personal calls and £70 on business.

You can claim for £70 of business expenses.

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