Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Not so simple

04 September 2013 / Mark Morton
Issue: 4418 / Categories: Comment & Analysis , Employees , Income Tax

Is the new expenses set-up for the self-employed easy to use?

Simplified expense deductions for 2013/14 onwards are introduced in FA 2013 Sch 5. Anita Monteith set out the new rules in her article Getting a fix.

To recap fixed-rate deductions rather than actual expenses can apply to: business mileage; business use of home; and the adjustment for private use of business premises. HMRC have recently issued guidance on the implementation of the rules in Revenue & Customs Brief 14/13.

In relation to business mileage in private vehicles while the rates do not seem particularly generous the rules appear to be relatively straightforward – actual costs and capital allowances or a fixed rate per mile for the lifetime of the vehicle.

In previous years many practitioners may have already been using HMRC’s approved mileage allowance payments for their small business clients with a turnover below the VAT registration limit.


If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon