Simplified Expenses for UK Sole Traders: How Flat Rates Work
If you drive for work or do some of your work from your kitchen table, you’ve probably wondered whether it’s worth calculating the exact cost of every mile or every kilowatt-hour. HMRC has a shortcut for this called simplified expenses – a set of flat rates you can claim instead of working out actual costs for specific parts of your business. It isn’t a legal requirement and it isn’t for everyone, but for a lot of UK sole traders it removes a genuinely tedious slice of admin. Here’s how it actually works, who’s allowed to use it, and how to think about whether it’s worth it for you.
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