The simplification of expenses for small businesses is part of the government’s attempt to simplify taxation. One of the measures introduced in the Finance Act 2013 last July, under the banner of ‘simpler income tax for small businesses’ is a set of fixed rate deductions. Only sole traders or business partnerships can use these simplified expenses.
You can use flat rates for any or all of these expenses:
- business costs for vehicles
- business use of your home
- private use of business premises as a home
You can start using simplified expenses for the tax year 2013 to 2014.
Contact us to find out how this may effect you and how we can help.
