HMRC's simplified expenses let you use flat rates for your vehicle, home working and more, but flat rates are not always best. We check whether simplified or actual costs save you more and apply the better one.
Simplified Expenses
Simplified expenses let the self-employed claim flat rates instead of working out actual costs, a set rate per business mile for vehicles, a monthly flat rate for working from home based on hours, and a flat adjustment where you live on your business premises. They are quick and easy, but for higher-cost situations, claiming actual costs can give a much bigger deduction.
Your Tax Help Accountants compares the simplified flat rates against your actual costs, for your vehicle, home working and premises, and claims whichever gives the larger, defensible deduction. Simplicity where it helps, and a bigger claim where actual costs win, we make sure you are never worse off using the flat rate by default.
Simplified expenses are convenient but often smaller than a proper actual-cost claim, especially for home working and vehicles with high running costs. Comparing the two, rather than defaulting to the flat rate, frequently increases your deduction.
The Detail That Matters
HMRC's simplified expenses let the self-employed claim flat rates for vehicles, home working and living on business premises instead of working out actual costs. They are quick, but flat rates are often smaller than a proper claim, so comparing the two pays.
Simplified expenses cover a set rate per business mile for vehicles, a monthly flat rate for working from home based on hours, and a flat adjustment where you live on your business premises. No receipts or apportionment needed.
For higher-cost situations, a home office used heavily, or a vehicle with high running costs, claiming actual costs (a proportion of real expenses, plus capital allowances on the vehicle) often gives a much bigger deduction.
The per-mile rate is simple, but actual running costs plus capital allowances can be larger for expensive or high-mileage vehicles. We compare both and claim whichever wins for you.
The flat home-working rate is convenient but often smaller than a proper share of your real household costs. For full-time home workers, the actual-cost method usually gives more.
Defaulting to the flat rates is easy but frequently costs you deductions, especially for home working and higher-cost vehicles, where actual costs would have given a larger, defensible claim.
Key Figures
How We Help
We compare the per-mile flat rate against your actual vehicle running costs and capital allowances, and claim whichever is larger for you.
The flat home-working rate is simple but often smaller than a proportional claim on your real home costs. We work out both and claim the bigger.
Where you live on your business premises, we apply the simplified adjustment or actual costs, whichever gives the right, lower-tax result.
All the forms, calculations and correspondence handled on your behalf, so you never have to decode HMRC's rules or sit on hold.
A clear fixed fee quoted after a free call, your position explained in plain English, and never a surprise bill.
We act quickly, and where earlier years are involved we put those right too, reclaiming refunds or minimising penalties.
Defaulting to simplified flat rates is easy but often costs you deductions, particularly for home working and higher-cost vehicles. We compare both methods and claim the larger, so you never lose out to convenience.
Recent Client Outcome
A sole trader was using HMRC's flat-rate home-working and mileage allowances by default, assuming they were the only option.
What we did. We compared the flat rates against a proportional claim on their real home costs and their actual vehicle running costs plus capital allowances.
The outcome. The actual-cost method gave a considerably larger deduction on both, so we switched them, increasing their claim and reducing their tax.
Comparing both methods, rather than defaulting to convenience, put a bigger, legitimate deduction on their return.
Why People Come to Us
Questions Answered
Free fifteen-minute call. Fixed quote within twenty-four hours. Your return filed, every expense claimed, your bill explained, and salon VAT, payroll and accounts handled if you own a salon. Same accountant, start to finish.
Or email info@yourtaxhelp.co.uk, we typically respond within two business hours.
📅 Free consultation calls available weekdays 1pm to 3pm and 7pm to 8pm. Pick a slot that suits you.