HMRC have reminded sole trader taxpayers some interesting points:
Fixed rate deductions rather than actual expenses:- business mileage, use of home, private use of business premises.
Business mileage – you can claim actual costs and capital allowances or fixed rate per mile for the lifetime of the vehicle.
Car 45p first 10,000 miles thereafter 25p per business mile – Motorcycles 24p
Use of Home as office – you can claim actual costs or fixed rate per month. Please note that you can only use the fixed rate if you work 25 hours or more a month from home. If you work under 25 hours per month use actual costs or HMRC will accept lower than £4 reflecting the facts of the case.
If you work at home 25-50 hours per month £10 per month, 51-100 hours £18 per month, 101> £26 per month.
And don’t forget, HMRC have the tools to check Facebook, Twitter and other sites to find out what taxpayers are up to.
Leave a Reply
You must be logged in to post a comment.