Simplified Expenses for UK Sole Traders: How Flat Rates Work
In short: HMRC's simplified expenses let UK sole traders, and partnerships with no limited company partner, claim flat rates instead of actual costs, most commonly a rate per business mile and a monthly amount for working from home based on hours worked. Limited companies can't use them, you still keep a mileage or hours log, and the current rates are on gov.uk.
Read MoreUK Sole Trader Allowable Expenses: A Guide for 2026-27
In short: For 2026-27, HMRC lets UK sole traders deduct a cost from their income if it was incurred wholly and exclusively for the business, and mixed-use costs are apportioned to the business share. The main allowable categories are office costs, travel, vehicle costs, staff costs, stock and materials, and use of home; client entertainment, everyday clothing and commuting are not allowable.
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