| BHBPA is preparing to lobby government to update the simplified expenses flat rate – we believe this review is long overdue What are simplified expenses? These are flat rates that can be used in tax returns by self-employed people who use their home for business to reduce taxable income by an amount that reflects a proportion of household running costs, based on the amount of time spent working. It is designed to save the time-consuming and complicated process of making the calculation of how much of a household bill for electricity and heating usage, for example, is due to business use:https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim75010 Long overdue for review These rates have not been reviewed for over a decade. While £26 a month seemed a reasonable deduction ten years ago, it is now far less reflective of the much-increased cost of energy and other bills that self-employed work-at-home individuals pay and essentially results in paying more tax than they should. |
 In the first instance send your comments to: richard.cox@bhbpa.co.uk 07393 728688 |